Problem 13-3A (Direct Method) Your answer is partially correct. Try again. The i
ID: 2517914 • Letter: P
Question
Problem 13-3A (Direct Method) Your answer is partially correct. Try again. The income statement for Tremblant Limited is presented here: Year Ended December 31, 2015 Service revenue Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit $939,600 711,000 228,600 73,090 155,510 37,110 118,400 Tremblant's statement of financial position contained these comparative data at December 31 2015 2014 Accounts receivable Prepaid expenses Accounts payable Salaries payable Unearned revenue Interest payable Income tax payable 56,750 13,780 35,820 17,770 11,220 6,620 4,070 48,360 15,780 1,710 20,020 8,730 5,130 9,350 Additional information: . Operating expenses include depreciation expense, $49,890; amortization expense, $15,490; administrative expenses, $115,500 salaries expense, $506,430; and loss on the disposal of 2. Unearned revenue is received from customers. equipment, $23,690 3. Prepaid expenses and accounts payable relate to operating (administrative) expenses.Explanation / Answer
Ans. TREMBLANT LIMITED Statement of Cash Flows (Partial)-Direct Method Year Ended December 31, 2015 Operating activities Cash receipts from customers 928720 Cash payments: For opeating expenses 119390 For interest 71600 For income tax 42390 To employees 508680 Total cash payment 742060 Net Cash provided by operating activities 186660 *Calculation of cash received from customers: Service revenue 939600 Add: beg. Accounts receivables 48360 Less: End. Accounts receivables -56750 Add: beg. Unearned revenue 8730 Less: End. Unearned revenue -11220 Cash receipts from customers 928720 *Unearned revenue is received from customer.