1.Calculate the operating section of cash flow using direct method2. Calculate the finance section of cash flow using the same information from the next page assuming that the cash dividend were paid3.calculate the Inventory turnover ratio with the information provided Genesis Corp.Income StatementFor Year Ended December 31, 2014S 590,000....$300,000Sales216,000Cost of goods sold.Wages and other operating expenses.Interest expense7,00015,00024,000(562,000)(6,000)Income taxes expenseDepreciation expense.Loss on sale of equipment16,000Gain on retirement of bonds2438,000Net income.Genesis Corp.Balance SheetDecember 31, 2014 and 201320142013AssetsCurrent assets:$ 17,000$ 12,000Cash60,00040,000Accounts recelvable84,00070,000Merchandise inventoryPrepaid expenses.Total current assets.Long-term assets:Property, plant and equipment.Less Accumulated depreciation.6,0004,000$167,000$126,000$250,000$210,000(60,000)5357,000(48,000)$288,000Total assets.LiabilitiesCurrent liabilities:$ 35,000$ 40,000Accounts payableInterest payable.Income taxes payable.Total current liabilitiesLong-term labilities:Bonds payable.3,0004,00022,000$ 60,00012,0005 56,00090,00064,000Total liabilities$150,000$120,000EquityContributed capital:Common shares$ 80,000Retained earningsTotal equity.Total liabilities and equity.$ 95,000112,000207,00088,000168,000$288,0005357.000

Under direct method; cash received from customer, cash paid to creditors for inventory, for…

Answered: g the same infor

Business

Accounting

g the same infor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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