Net income for the Frost Company for the most recent year was $150,000, consisting of $875,000 of revenues, $360,000 of cost of goods sold, and $365,000 of operating expenses. The following changes in current assets and current liabilities have been identified:

Required:
Calculate the cash flows from operating activities for the year, applying the direct method. Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Question

Net income for the Frost Company for the most recent year was $150,000, consisting of $875,000 of revenues, $360,000 of cost of goods sold, and $365,000 of operating expenses. The following changes in current assets and current liabilities have been identified:
  
Required:
Calculate the cash flows from operating activities for the year, applying the direct method. Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Quizplus · Accepted Answer

The Answer of Net income for the Frost Company for the most recent year was $150,000, consisting of $875,000 of revenues, $360,000 of cost of goods sold, and $365,000 of operating expenses. The following changes in current assets and current liabilities have been identified:
  
Required:
Calculate the cash flows from operating activities for the year, applying the direct method. Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Net Income for the Frost Company for the Most Recent