The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 3 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Reporting and Interpreting Cash Flows from Operating Activities from an Analyst’s Perspective (Indirect Method) - Capaz Company completed its income statement and balance sheet for 2012 and provided the following information:
|
Income Statement for 2012 |
||
|
Service revenue |
$53,000 |
|
|
Expenses |
||
|
Salaries |
$41,000 |
|
|
Depreciation |
7,000 |
|
|
Amortization of copyrights |
200 |
72,375 |
|
Other expenses |
9,700 |
$57,900 |
|
Net loss |
($4,900) |
|
|
Partial Balance Sheet |
2012 |
2011 |
|
Accounts receivable |
$8,000 |
$15,000 |
|
Salaries payable |
15,000 |
1,000 |
|
Other accrued liabilities |
1,000 |
5,100 |
In addition, Capaz bought a small service machine for $5,000.
Required:
1. Present the operating activities section of the statement of cash flows for Capaz Company using the indirect method.
2. What were the major reasons that Capaz was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll