The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue $930,000 Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 914,000 Net income $16,000 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 9,000 7,000 Accounts payable 22,000 30,000 Wages payable 9,000 7,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate.
The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue $930,000 Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 914,000 Net income $16,000 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 9,000 7,000 Accounts payable 22,000 30,000 Wages payable 9,000 7,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Azuza Company owns no plant assets and had the following income statement for the year:
| Sales revenue | $930,000 | |
| Cost of goods sold | $650,000 | |
| Wages expense | 210,000 | |
| Rent expense | 42,000 | |
| Utilities expense | 12,000 | 914,000 |
| Net income | $16,000 |
Additional information about the company includes:
| End of Year |
Beginning of Year |
|
|---|---|---|
| Accounts receivable | $67,000 | $59,000 |
| Inventory | 62,000 | 86,000 |
| Prepaid rent | 9,000 | 7,000 |
| Accounts payable | 22,000 | 30,000 |
| Wages payable | 9,000 | 7,000 |
Use the preceding information to calculate the cash flow from operating activities using the indirect method.
Remember to use negative signs with answers when appropriate.
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