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Please answer and show all work. 22. Accounts receivable amounts to $215,000 for

ID: 2593362 • Letter: P

Question

Please answer and show all work.

22. Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement using the indirect method? 4 Financial Accounting

23. Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. What are the cash payments for operating expenses reported on the cash flow statement using the direct method?

24. Red Line, Inc. has a cash balance of $80,000, short-term investments of $20,000, net receivables of $60,000, and inventory of $450,000. Current liabilities total $200,000. What is Red Line’s quick ratio?

Explanation / Answer

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22)

Cash flows from operating activities Particulars Amount $ Amount $ Net Income     300,000 Less: Increase in current assets and decrease in current liabilities Increase in accounts receivable     (30,000)     (30,000) Net cash provided by operating activities     270,000