Given the Following Information, Indicate the Cash Flow Amounts in the Blanks
Question 122
Question 122
Essay
Given the following information, indicate the cash flow amounts in the blanks provided.(Note that the ABCCompany uses a just-in-time inventory system and there is no beginning or ending inventory). ABC CompanyIncome StatementFor the Year Ended December 31, Year 2Sales revenue, 75% on credit Accounts receivable balance December 31, Year 1, $50,000 December 31, Year 2, $60,000 Cost of good sold. 100% on credit Accounts payable balance December 31, Year 1,$15,000 December 31 , Year 2,$12,000 Expenses: Salaries and Wages Accrued wages payable balance December 31, Year 1, $1,500 December 31, Year 2, $1,600 Depreciation expense Rent expense No accruals Income tax expense Taxes payable balance December 31, Year 1, $1,000 December 31 , Year 2,$2,000 Total expenses Net income Cash flow from operating activities$200,000$60,000$26,000$2,500$1,500$5,500$35,500 Cash Flow $$$$$$$104,500$
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