Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales reveņue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please answer both questions completely and correctly
Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had
sales reveņue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were
$53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.
Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign eg.
-15,000 or in parenthesis e.g. (15,000).)
Net cash provided by operating activities
2$
Transcribed Image Text:Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales reveņue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities 2$
The following information is taken from the 2022 general ledger of Swifty Company.
Rent
Rent expense
$30,600
Prepaid rent, January 1
6,200
Prepaid rent, December 31
7,600
Salaries
Salaries and wages expense
$64,300
Salaries and wages payable, January 1
2,700
Salaries and wages payable, December 31
8,700
Sales
Sales revenue
$ 160,000
Accounts receivable, January 1
19,300
Accounts receivable, December 31
6,600
In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the
direct method.
Cash
payments for rent
24
Cash payments for salaries
24
Cash receipts from customers
24
Transcribed Image Text:The following information is taken from the 2022 general ledger of Swifty Company. Rent Rent expense $30,600 Prepaid rent, January 1 6,200 Prepaid rent, December 31 7,600 Salaries Salaries and wages expense $64,300 Salaries and wages payable, January 1 2,700 Salaries and wages payable, December 31 8,700 Sales Sales revenue $ 160,000 Accounts receivable, January 1 19,300 Accounts receivable, December 31 6,600 In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method. Cash payments for rent 24 Cash payments for salaries 24 Cash receipts from customers 24
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