The accounting records of Demontre Pharmaceuticals, Inc., reveal the following: Requirement 1. Compute cash flows from operating
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Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Demon-tres operating cash flow. Give the reason for yourevaluation.
Transcribed Image Text:
Payment of salaries and wagcs Depreciation expense Decrcasc in current S$40,000 16,000 Payment of income tax 23,000 Collection of dividend $47,000 revenIC 12,000 ..8,000 . 73,000 7,000 25,000 18,000 Pa Cash sales.. Increasc in current asscts other than cash 21,000Gain on sale of land Payment of dividends.... 9,000 Acquisition of land with cash... Collection of accounts Payment of accounts receivable.... 86,000 payable....
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Cash flows from operating activities Receipts Collections from customers 86000 73000 15900...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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