Asquith Company Income Statement
P13-3BÂ The income statement of Asquith Company is presented on the next page. Additional information:
1. Accounts receivable decreased $230,000 during the year, and inventory increased
$120,000.
2. Prepaid expenses increased $125,000 during the year.
3. Accounts payable to merchandise suppliers increased $50,000 during the year.
4. Accrued expenses payable increased $155,000 during the year.
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Asquith Company Income Statement
For the Year Ended December 31, 2014
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Sales revenue
Cost of goods sold Beginning inventory
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$1,780,000
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$5,250,000
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Purchases
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3,430,000
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Goods available for sale
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5,210,000
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Ending inventory
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1,900,000
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Total cost of goods sold
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3,310,000
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Gross profit Operating expenses
Depreciation expense
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95,000
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1,940,000
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Amortization expense
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20,000
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Other expenses
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945,000
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1,060,000
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Net income
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$Â Â 880,000
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Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Asquith Company, using the indirect method.
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Answers
Status NEW
Posted 07 May 2017 09:05 AM
My Price 7.00
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Attachments
file 1494147981-Answer.docx preview (202 words )
P-----------13------------3BÂ----------- Th-----------e i-----------nco-----------me -----------sta-----------tem-----------ent----------- of----------- As-----------qui-----------th -----------Com-----------pan-----------y i-----------s p-----------res-----------ent-----------ed -----------on -----------the----------- ne-----------xt -----------pag-----------e. -----------Add-----------iti-----------ona-----------l i-----------nfo-----------rma-----------tio-----------n: ----------- 1.----------- -----------Acc-----------oun-----------ts -----------rec-----------eiv-----------abl-----------e d-----------ecr-----------eas-----------ed -----------$23-----------0,0-----------00 -----------dur-----------ing----------- th-----------e y-----------ear-----------, a-----------nd -----------inv-----------ent-----------ory----------- in-----------cre-----------ase-----------d -----------$12-----------0,0-----------00.----------- 2-----------. ----------- Pr-----------epa-----------id -----------exp-----------ens-----------es -----------inc-----------rea-----------sed----------- $1-----------25,-----------000----------- du-----------rin-----------g t-----------he -----------yea-----------r. ----------- 3.----------- -----------Acc-----------oun-----------ts -----------pay-----------abl-----------e t-----------o m-----------erc-----------han-----------dis-----------e s-----------upp-----------lie-----------rs -----------inc-----------rea-----------sed----------- $5-----------0,0-----------00 -----------dur-----------ing----------- th-----------e y-----------ear-----------. -----------4.Â----------- A-----------ccr-----------ued----------- ex-----------pen-----------ses----------- pa-----------yab-----------le -----------inc-----------rea-----------sed----------- $1-----------55,-----------000----------- du-----------rin-----------g t-----------he -----------yea-----------r. -----------  ----------- A-----------squ-----------ith----------- Co-----------mpa-----------nyÂ----------- In-----------com-----------e
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