The Smithfield Company owns no plant assets and had the following income statement for the year: Sales revenue $1,840,000 Cost of goods sold $1,232,000 Wages expense 336,000 Rent expense 99,200 Utilities expense 72,000 1,739,200 Net income $100,800 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $118,400 $78,400 Inventory 112,000 137,600 Prepaid rent 8,000 11,200 Accounts payable 41,600 44,800 Wages payable 19,200 20,800 Use the preceding information to calculate the cash flow from operating activities using the indirect method.
The Smithfield Company owns no plant assets and had the following income statement for the year: Sales revenue $1,840,000 Cost of goods sold $1,232,000 Wages expense 336,000 Rent expense 99,200 Utilities expense 72,000 1,739,200 Net income $100,800 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $118,400 $78,400 Inventory 112,000 137,600 Prepaid rent 8,000 11,200 Accounts payable 41,600 44,800 Wages payable 19,200 20,800 Use the preceding information to calculate the cash flow from operating activities using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Smithfield Company owns no plant assets and had the following income statement for the year:
| Sales revenue | $1,840,000 | |
| Cost of goods sold | $1,232,000 | |
| Wages expense | 336,000 | |
| Rent expense | 99,200 | |
| Utilities expense | 72,000 | 1,739,200 |
| Net income | $100,800 |
Additional information about the company includes:
| End of | Beginning | |
|---|---|---|
| Year | of Year | |
| $118,400 | $78,400 | |
| Inventory | 112,000 | 137,600 |
| Prepaid rent | 8,000 | 11,200 |
| Accounts payable | 41,600 | 44,800 |
| Wages payable | 19,200 | 20,800 |
Use the preceding information to calculate the
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