A company completed its income statement and balance sheet

Reference no: EM13606511

A company completed its income statement and balance sheet for the year and provided the following information: Income Statement Service Revenue $55,000 Expenses: Salaries 42,500 Rent 7,200 Depreciation 6,800 Amortization of copyrights 1,000 Total Expenses 57,500 Net loss $(2,500) Partial Balance Sheet Current Year Prior Year Accounts receivable $ 7,000 $16,000 Salaries Payable 14,000 7,200 Prepaid rent 2,200 8,400 In addition, the company bought a small piece of equipment costing $6,500.

Required:

1. Prepare the operating activities section of the statement of cash flows using the indirect method.

2. Explain why the company was able to report positive operating cash flow despite having a net loss for the year.

Reference no: EM13606511

Questions Cloud

The angle between the vertical and the paths of the drops : during a rainstorm the paths of the raindrops appear to form an angle of 30deg with the vertical and to be directed to

Mike single age 31 had the following items for 2012 salary : mike single age 31 had the following items for 2012 salary 50000 nonbusiness bad debt 6000 casualities - independent

Barretts fashions forecasts sales of 125000 for the quarter : barretts fashions forecasts sales of 125000 for the quarter ended december 31. its gross profit rate is 20 of sales and

The spherical shell carries charge with a uniform density : a particle with a charge of -60.0 nc is placed at the center of a nonconducting spherical shell of inner radius 20.0 cm

A company completed its income statement and balance sheet : a company completed its income statement and balance sheet for the year and provided the following information income

Stockholders acts can bind the corporation even though the : 1. which of the following is not characteristic of a corporation?a. the financial loss that a stockholder may suffer

A spherical shell with an inner radius of 10 cm and outer : a spherical shell with an inner radius of 10 cm and outer radius of 12 cm contains a net charge 10uc. at the center of

The velocity of the air stream decreases from 230 ms to 30 : nitrogen gas at 60 kpa and 7 degrees celsius enter an adiabatic diffuser steadily with a velocity of 195 ms and leaves

Two point charges are separated by a distance of 15 cm and : two point charges are separated by a distance of 1.5 c.m. and have charges of 2.0 micro c and 4.0 micro c respectively.

User Account

All Pages