Accounting Question----Accounting expert only Please!
Avaleeann2017
week_9_discussio1.docxTop of Form
"Cash Flows" Please respond to the following:
E12-4 The current sections of Sunn Inc.'s balance sheets at December 31, 2016 and 2017, are presented here. Sunn's net income for 2017 was $153,000. Depreciation expense was $27,000.
|
|
2017 |
2016 |
|
Current assets |
|
|
|
Cash |
$105,000 |
$ 99,000 |
|
Accounts receivable |
80,000 |
89,000 |
|
Inventory |
168,000 |
172,000 |
|
Prepaid expenses |
27,000 |
22,000 |
|
Total current assets |
$380,000 |
$382,000 |
|
Current liabilities |
|
|
|
Accrued expenses payable |
$ 15,000 |
$ 5,000 |
|
Accounts payable |
85,000 |
92,000 |
|
Total current liabilities |
$100,000 |
$ 97,000 |
Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2017, using the indirect method. Suggest a meaning for this number.
Prepare statement of cash flows—indirect method.
Check Figure for E12-4 Net cash provided $191,000.
