Ask Experts Questions for FREE Help !
Ask
    belindabenson's Avatar
    belindabenson Posts: 2, Reputation: 1
    New Member
     
    #1

    Apr 5, 2013, 01:00 PM
    Answer accounting problems
    Can you please explain how to get the answer stated below?
    Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement:
    Sales Revenue $240,000
    Interest Revenue 1,000
    Gain on sale of plant assets 4,000
    Total revenues and gains $245,000
    Cost of goods sold 110,000
    Salary expense 45,000
    Depreciation expense 12,000
    Other operating expenses 23,000
    Interest expense 1,000
    Income tax expense 5,000
    Total expenses $196,000
    Net income (loss) $49,000

    Other information provided:
    Current assets other than cash increase by $24,000.
    Current liabilities decrease by $1,000.
    Answer: $32,000 positive
    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
    Junior Member
     
    #2

    Apr 5, 2013, 01:35 PM
    49,000+12,000-4000-24,000-1,000 = 32,000

    That's the figures you need and it's now over to you to see if you understand where they come from and why they're + or -, or maybe you'll just take the solution and run.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

I need a answer for one accounting probblem [ 1 Answers ]

Listed below are few accounts in the trial balance. Classify them under P&L and various balance sheet heads. 1. Plant and Machinery 2. Bank Balance 3.General Reserve 4. Share Capital 5. Capital work in-progress 6. Miscellaneous Expenditure 7. Debtors 8. Accumulated depreciation

Does This Accounting Answer Look Correct? [ 1 Answers ]

Here is the problem: All sizes | . | Flickr - Photo Sharing! My answer: Stratfield, Inc. Statement of Stockholders' Equity For the year ended December 31, 2008 Contributed capital, December 31, 2007... $16,500 Add: Common stock issued in 2008... $4,000


View more questions Search