The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.
The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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![The following information have been taken from income statement and balance sheet of
Kamal Inc.
Income statement
• Net income: $192,500
• Depreciation expense: $62,500
• Amortization of intangible assets: $20,000
• Gain on sale of equipment: $45,000
• Loss on sale of investments: $17,500
Balance sheet:
• Accounts receivable on January 1, 2017: $190,000
• Accounts receivable on December 31, 2017: $167,500
• Inventory on January 1, 2017: $287,500
• Inventory on December 31, 2017: $251,500
• Prepaid expenses on January 1, 2017: $5,000
• Prepaid expenses on December 31, 2017: $11,000
Accounts Payable on January 1, 2017: $205,000
• Accounts payable on December 31, 2017: $189,500
• Accrued expenses payable on January 1, 2017: $77,500
• Accrued expenses payable on December 31, 2017: $90,000
Accounts payable given above relate to suppliers of merchandise.
Required: Using above information, compute net cash flows from operating activities.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3edf744-b803-4cea-a823-2e72aad00a8f%2Ff8c2b779-637e-49a6-a22c-22dcc469eff9%2F8ir4mta.jpeg&w=3840&q=75)
Transcribed Image Text:The following information have been taken from income statement and balance sheet of
Kamal Inc.
Income statement
• Net income: $192,500
• Depreciation expense: $62,500
• Amortization of intangible assets: $20,000
• Gain on sale of equipment: $45,000
• Loss on sale of investments: $17,500
Balance sheet:
• Accounts receivable on January 1, 2017: $190,000
• Accounts receivable on December 31, 2017: $167,500
• Inventory on January 1, 2017: $287,500
• Inventory on December 31, 2017: $251,500
• Prepaid expenses on January 1, 2017: $5,000
• Prepaid expenses on December 31, 2017: $11,000
Accounts Payable on January 1, 2017: $205,000
• Accounts payable on December 31, 2017: $189,500
• Accrued expenses payable on January 1, 2017: $77,500
• Accrued expenses payable on December 31, 2017: $90,000
Accounts payable given above relate to suppliers of merchandise.
Required: Using above information, compute net cash flows from operating activities.
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