O'hare Company's only asset as of January 1, 2017, was a limousine. During 2017, only the following three transactions occurred: Services of $92,000 were provided on account. All accounts receivable were collected. Depreciation on the limousine was $16,700. Required: 1. Develop an income statement for O'hare for 2017. O'hare Company Income Statement For The Year Ended December 31, 2017 Service revenue $ Depreciation expense Net income $ 2. Determine the amount of the net cash inflow for O'hare for 2017. $ 3. The amount of net income does not equal the amount of the net cash inflow because of depreciation expense. This is a noncash charge which does not affect cash. This needs to be added back to net income to determine the amount of net cash inflow. 4. If O'hare developed a cash flow statement for 2017 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities? $
O'hare Company's only asset as of January 1, 2017, was a limousine. During 2017, only the following three transactions occurred: Services of $92,000 were provided on account. All accounts receivable were collected. Depreciation on the limousine was $16,700. Required: 1. Develop an income statement for O'hare for 2017. O'hare Company Income Statement For The Year Ended December 31, 2017 Service revenue $ Depreciation expense Net income $ 2. Determine the amount of the net cash inflow for O'hare for 2017. $ 3. The amount of net income does not equal the amount of the net cash inflow because of depreciation expense. This is a noncash charge which does not affect cash. This needs to be added back to net income to determine the amount of net cash inflow. 4. If O'hare developed a cash flow statement for 2017 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities? $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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O'hare Company's only asset as of January 1, 2017, was a limousine. During 2017, only the following three transactions occurred:
Services of $92,000 were provided on account.All accounts receivable were collected.
Required:
1. Develop an income statement for O'hare for 2017.
| O'hare Company | |
| Income Statement | |
| For The Year Ended December 31, 2017 | |
| Service revenue | $ |
| Depreciation expense | |
| Net income | $ |
2. Determine the amount of the net
$
3. The amount of net income does not equal the amount of the net cash inflow because of depreciation expense. This is a noncash charge which does not affect cash. This needs to be added back to net income to determine the amount of net cash inflow.
4. If O'hare developed a cash flow statement for 2017 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities?
$
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