Situation A: Buffalo Co. reports revenues of $200,000 and operating expenses of $108,000 in its first year of operations, 2020. Accounts receivable and accounts payable at year-end were $70,600 and $29,100, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $
Situation A: Buffalo Co. reports revenues of $200,000 and operating expenses of $108,000 in its first year of operations, 2020. Accounts receivable and accounts payable at year-end were $70,600 and $29,100, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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