Portions of the financial statements for Alliance Technologies are provided belo

Question

Portions of the financial statements for Alliance Technologies are provided below ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2015 $ 375,000 Net sales Expenses: ost of goods sold Operating expenses Depreclation expense Income tax expense $220,000 67,000 16,700 25,500 Total expenses 329,200 Net income $ 45,800 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2015, compared to December 31, 2014 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax pavable $ 6,700 13,700 9,700 5,700 8,700 22,800

Explanation / Answer

Particulars Amount Net Profit as per profit and loss 45800 Add: Non cash Expense Depreciation 16700 Add: Decrease in assets / Increase in liabilities Decreae in accounts receivable 6700 Decrease in prepaid rent 9700 Increase in salaries payable 5700 Increase in income tax payable 22800 Less: Increase in assets / Decrease in libilities Increase in inventory 13700 Decrease in accounts payable 8700 Cash Flow from operating activities 85000

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