The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.
The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 50P: The following balance sheets and income statement were taken from the records of Rosie-Lee Company:...
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