Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Inc. is preparing its cash flow statement under the direct method and has provided this information: Information Amount Net credit sales 13000000 Accounts receivable,

XYZ Inc. is preparing its cash flow statement under the direct method and has provided this information:

Information

Amount

Net credit sales

13000000

Accounts receivable, end of the year

3000000

Accounts receivable, beginning of the year

2000000

Purchase (on account)

7000000

Trade payable, end of the year

3800000

Trade payable, beginning of the year

5000000

Operating expenses

5000000

Accrued expenses, beginning of the year

2000000

Accrued expenses, end of the year

900000

Depreciation on property, plant, and equipment

1100000

Required:

For the purposes of the cash flow statement under the direct method, you are required to compute the cash collections from customers, payments to suppliers and cash paid for operating expenses accordance with IAS 7.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACC 120 Wake Tech Financial Accounting W Connect Plus Access

Authors: J. David Spiceland

1st Edition

1308168926, 978-1308168920

More Books

Students also viewed these Accounting questions

Question

how do i prepare a cash flow statement using the indirect method?

Answered: 1 week ago