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