During 2010, Meal, Inc. earned a net income of $400,000. The firm increased its accountant’s receivable during the year by$250,000. The book value of its asset declined by an amount equal to the year's charge, or $180,000, and the market value of its asset increased by$20,000. Based only on this information, how much cash did Mead generate during the year?

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Originally Posted by jresendiz

During 2010, Meal, Inc. earned a net income of $400,000. The firm increased its accountant’s receivable during the year by$250,000. The book value of its asset declined by an amount equal to the year's charge, or $180,000, and the market value of its asset increased by$20,000. Based only on this information, how much cash did Mead generate during the year?

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I expect he will have to ask his accountant about his receivable. What is a charge against receivables and how does a receivable increase in market value?

You will have to excuse me, I'm confused must be a cultural thing