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WHAT IS THE CASH COLLECTED FROM CUSTOMERS DURING THE YEAR?

WHAT IS THE CASH COLLECTED FROM CUSTOMERS DURING THE YEAR?

FINANCIAL ACCOUNTING
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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OPERATING ACTIVITIES

WHAT IS THE CASH COLLECTED FROM CUSTOMERS DURING THE YEAR?

Statement of Cash Flows, Operating Activities. The profit or loss section of the statement of comprehensive income of MANILA Company for the year ended December 31, 2021 is reproduced below: Manila Company Income Statement For the year ended December 31, 2021 Sales 6,100,000 Cost of sales 3,700,000) Gross profit Gain on sale of equipment 2,400,000 100,000 Total revenues 2,500,000 Operating expenses Salaries 820,000 Insurance 380,000 Depreciation 220,000 1,420,000) Income before interest and income tax 1,080,000 120,000) 960,000 Interest expense Income before income tax expense 288,000) 672,000 Income tax expense Net income after tax P The following information is also available: Decrease in accounts receivable 120,000 Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable 280,000 160,000 100,000 180,000 30,000 18,000
Transcribed Image Text:Statement of Cash Flows, Operating Activities. The profit or loss section of the statement of comprehensive income of MANILA Company for the year ended December 31, 2021 is reproduced below: Manila Company Income Statement For the year ended December 31, 2021 Sales 6,100,000 Cost of sales 3,700,000) Gross profit Gain on sale of equipment 2,400,000 100,000 Total revenues 2,500,000 Operating expenses Salaries 820,000 Insurance 380,000 Depreciation 220,000 1,420,000) Income before interest and income tax 1,080,000 120,000) 960,000 Interest expense Income before income tax expense 288,000) 672,000 Income tax expense Net income after tax P The following information is also available: Decrease in accounts receivable 120,000 Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable 280,000 160,000 100,000 180,000 30,000 18,000
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