The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of YearBeginning of YearCash$51,200 $47,100 Accounts receivable (net)36,710 34,810 Merchandise inventory50,120 52,990 Prepaid expenses5,630 4,470 Accounts payable (merchandise creditors)47,970 44,560 Wages payable26,210 29,110 iv) Engage in a comprehensive process that uses the quantitative analysis of data as the basis for making judgments, drawing accurate conclusions from this work by providing an opinion of how well the company is doing financially.( for instance was there and net cash inflow or outflow).

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

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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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The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

	End of Year	Beginning of Year
Cash	$51,200		$47,100
Accounts receivable (net)	36,710		34,810
Merchandise inventory	50,120		52,990
Prepaid expenses	5,630		4,470
Accounts payable (merchandise creditors)	47,970		44,560
Wages payable	26,210		29,110

iv) Engage in a comprehensive process that uses the quantitative analysis of data as the basis for making judgments, drawing accurate conclusions from this work by providing an opinion of how well the company is doing financially.( for instance was there and net cash inflow or outflow).

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