The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to
Question:
The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities.
Net income .......... $50,000
Depreciation expense ....... 7,000
Increase in inventory ........ 1,500
Decrease in salaries payable ..... 800
Decrease in accounts receivable ... 2,000
Amortization of patent ........ 500
Amortization of premium on bonds . 1,000
Increase in accounts payable .... 4,000
Cash dividends .......... 12,000
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For 
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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