Details of this Paper

Glitter Girl, Inc. recognized net income of $150,000 including $26,000 in depreciation expense

Description

solution


Question

Question;1. Glitter Girl, Inc. recognized net income of $150,000 including $26,000 in depreciation expense.Additional changes from the balance sheet are as follows.Accounts Receivable $3,500 decreasePrepaid Expenses $15,000 decreaseInventory $35,500 increaseAccrued Liabilities $12,000 decreaseAccounts Payable $20,000 increaseCompute the net cash from operating activities based on the above information.$132,500$79,000$205,500$167,0002. Cash flows from operating activities (indirect and direct methods).Presented below is the income statement of Smiling Tiger, Inc.Sales$250,000Cost of goods sold109,000Gross profit$141,000Operating expenses85,000Income before income taxes56,000Income taxes22,400Net income$33,600In addition, the following information related to net changes in working capital is presented.DebitCreditCash$10,600Accounts receivable2,400Inventories$3,600Salaries payable (operating expenses)12,000Accounts payable15,000Income taxes payable1,400Depreciation expense for the year was $14,700Deferred tax liability account increased $1,800Required:Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows:(a)using the indirect method.(b)using the direct method.

 

Paper#37888 | Written in 18-Jul-2015

Price : $19
SiteLock