Extracted below are information from the Scarlett Knight Corporation's Statement of Cash Flow prepared as of the year-end 2021. Use the below information gathered to compute the cash flows from operating activities. Please show how you arrived at your final answer. Payment of salaries and wages Depreciation Increase in current liabilities Increase in current assets other than cash $15,000.00 Gain on sale of land Payment of dividends Collection of accounts receivable Net Income $38,000.00 Collection of dividend revenue | $5,000.00 $17,000 $50,000.00 $7,000.00 $29,000.00 $50,000.00 $11,000.00 $24,000.00 Payment of interest $11,000.00 Cash sales $3,000.00| Land acquisition $60,000.00 Payment of accounts payable $26,000.00 | Payment of income tax A) $6,500.00 B) $7,000.00 C) ($6,000.00) D) ($60,000.00) E) $65,000.00
Extracted below are information from the Scarlett Knight Corporation's Statement of Cash Flow prepared as of the year-end 2021. Use the below information gathered to compute the cash flows from operating activities. Please show how you arrived at your final answer. Payment of salaries and wages Depreciation Increase in current liabilities Increase in current assets other than cash $15,000.00 Gain on sale of land Payment of dividends Collection of accounts receivable Net Income $38,000.00 Collection of dividend revenue | $5,000.00 $17,000 $50,000.00 $7,000.00 $29,000.00 $50,000.00 $11,000.00 $24,000.00 Payment of interest $11,000.00 Cash sales $3,000.00| Land acquisition $60,000.00 Payment of accounts payable $26,000.00 | Payment of income tax A) $6,500.00 B) $7,000.00 C) ($6,000.00) D) ($60,000.00) E) $65,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Extracted below are information from the Scarlett Knight Corporation's Statement of Cash Flow
prepared as of the year-end 2021. Use the below information gathered to compute the cash flows
from operating activities. Please show how you arrived at your final answer.
Payment of salaries and wages
Depreciation
Increase in current liabilities
Increase in current assets other than cash $15,000.00 Gain on sale of land
Payment of dividends
Collection of accounts receivable
Net Income
$38,000.00 Collection of dividend revenue $5,000.00
$17,000
$50,000.00
$7,000.00
$29,000.00
$50,000.00
$11,000.00
$24,000.00 Payment of interest
$11,000.00 Cash sales
$3,000.00 Land acquisition
$60,000.00 Payment of accounts payable
$26,000.00 Payment of income tax
A) $6,500.00
B) $7,000.00
C) ($6,000.00)
D) ($60,000.00)
E) $65,000.00
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