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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer both questions completely and correctly
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 $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.
Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign eg.
-15,000 or in parenthesis e.g. (15,000).)
Net cash provided by operating activities
2$
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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