Financial Accounting, 8th Edition
Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
Question
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Chapter 12, Problem 3AP

1.

To determine

Prepare the statement of cash flows of Company I for the current year ended December 31, 2015using the direct method.

2.

To determine

Evaluate the statement of cash flows.

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A broadcasting company failed to make a year-end accrual of $200,000 for fines due to a violation of FCC rules. Its tax rate is 40%. As a result of this error, net income was_. a. Overstated by $80,000. b. Overstated by $120,000. c. Overstated by $250,000. d. Unaffected.
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Chapter 12 Solutions

Financial Accounting, 8th Edition

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