) Provide an accurate, full and complete explanation and implication of the information presented in (mathematical forms) by explaining the significance of the cash flow statement The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End of Year Beginning of Year Cash $51,200   $47,100   Accounts receivable (net) 36,710   34,810   Merchandise inventory 50,120   52,990   Prepaid expenses 5,630   4,470   Accounts payable (merchandise creditors) 47,970   44,560   Wages payable 26,210   29,110

Question

) Provide an accurate, full and complete explanation and implication of the information presented in (mathematical forms) by explaining the significance of the cash flow statement

The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

 

End of Year

Beginning of Year

Cash

$51,200

 

$47,100

 

Accounts receivable (net)

36,710

 

34,810

 

Merchandise inventory

50,120

 

52,990

 

Prepaid expenses

5,630

 

4,470

 

Accounts payable (merchandise creditors)

47,970

 

44,560

 

Wages payable

26,210

 

29,110

 



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