The current section expense of Scoggin Inc.'s balance sheets at December 31, 2016, and 2017, are...
Question:
The current section expense of Scoggin Inc.'s balance sheets at December 31, 2016, and 2017, are presented here.
Scoggin's net income for 2017 was $154,300. Depreciation expense was $24,000.
| 2017 | 2016 | |
| Current assets | ||
| Cash | $108,700 | $99,800 |
| Accounts receivable | 111,300 | $78,900 |
| Inventory | $158,700 | $172,300 |
| Prepaid expenses | $26,100 | 25,300 |
| Total current assets | $404,800 | $376,300 |
| Current liabilities | ||
| Accrued expenses payable | $15,900 | $9,300 |
| Accounts payable | $85,100 | $95,400 |
| Total current liabilities | $101,000 | $104,700 |
Prepare the net cash provided by operating activities section of the company's statement of cash flow for the year ended December 31,2017,using the indirect method.
Cash Flow Statement:
Cash flow statement is a financial statement which specifically reports the cash movement or activities during the reporting period. This statement only contains cash related transaction. Cash is the most liquid account, therefore, the users (like investors, creditors, shareholders, etc,.) need to know the cash activities that have been entered into by the company.
Answer and Explanation: 1
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View this answer| 2017 | 2016 | Increase (decrease) | |
|---|---|---|---|
| Current assets | |||
| Accounts receivable | 111,300 | 78,900 | 32,400 |
| Inventory | 158,700 | 172,300 | ... |
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Preparing a Cash Flow Statement by the Indirect Method
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Cash flow statements are a measure of how money circulates throughout an organization. Learn to use the indirect method to prepare a cash flow statement, including where to get and how to organize the necessary information.
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