Problem 13-3A (Direct Method) The income statement for Tremblant Limited is pres
ID: 2557480 • Letter: P
Question
Problem 13-3A (Direct Method) The income statement for Tremblant Limited is presented here TREMBLANT LIMITED Income Statement Year Ended December 31, 2015 Service revenue Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit $930,400 719,200 211,200 75,770 135,430 36,900 $98,530 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 $56,480 12,660 35,800 19,120 12,060 6,750 4,610 $52,630 15,920 41,410 20,050 8,150 4,860 9,090 Additional information: Operating expenses include depreciation expense, $24,180 48,860; amortization expense, $15,670; administrative expenses,?120,400; salaries expense,?510,090; and loss on the disposal of equipm 2. Uneaned revenue is received from customers. 3. Prepaid expenses and accounts payable relate to operating (administrative) expenses.Explanation / Answer
Operating Activities: cash received from Service revenue 930460 Payment Payment of Admin expense 122750 Payment of salaries expense 511020 Income tax paid (36900+9090-4610) 41380 675150 Net cash provided ffrom Operating Activities 255310 Note Collections from Service revenue: Service revenue 930400 Add: Accounts receivable n beg. 52630 Add: Unearned revenue at end 12060 Less: Accounts receivable at end -56480 Less: unearned revenue in beg. -8150 Collections 930460 Payment of Admin Expense: Admin expense 120400 Add: Accounts payable in beg. 41410 Add: prepaid at end 12660 Less: prepaid in beg. -15920 Less: Accounts payable at end -35800 Payment made 122750 Payment of Salarie expense Salaries expense 510090 Add: Salaries payable in beg. 20050 Less: Salaries in the end -19120 Payment of Salarie expense 511020