E5-11 Use the information provided in each of the followingindependent situation

Question

E5-11 Use the information provided in each of the followingindependent situations to answer the questions. For eachsituation, briefly explain the reasoning behind each of yourcalcualations. A. Net cash flow from operations for a period was30,000. Noncash revenues for the period were 11,000. Noncash expenses for the period were 13,200. What was netincome for the period? B. Wages expense for a period was 69,000. Wagespayable increased during the period by 10,500. How much cashwas paid to employees during the period? C. Cash collected from customers for a fiscal period was224,500. Sales revenue for the period was 241,000. Accounts receivable at the beginning of the period was36,000. What was the balance in accounts receivable at theend of the period? D. Net income for a period was 45,000. Currentassets increased during the period by 7,500. Currentliabilities increased during the period by 10,000. Howmuch was cash flow from operations for the period? E5-11 Use the information provided in each of the followingindependent situations to answer the questions. For eachsituation, briefly explain the reasoning behind each of yourcalcualations. A. Net cash flow from operations for a period was30,000. Noncash revenues for the period were 11,000. Noncash expenses for the period were 13,200. What was netincome for the period? B. Wages expense for a period was 69,000. Wagespayable increased during the period by 10,500. How much cashwas paid to employees during the period? C. Cash collected from customers for a fiscal period was224,500. Sales revenue for the period was 241,000. Accounts receivable at the beginning of the period was36,000. What was the balance in accounts receivable at theend of the period? D. Net income for a period was 45,000. Currentassets increased during the period by 7,500. Currentliabilities increased during the period by 10,000. Howmuch was cash flow from operations for the period?

Explanation / Answer

A) Net Income = Net Cash Flow + Non-Cash Revenue - Non-CashExpenses NI = 30,000 + 11,000 - 13,200 = 27,800 B) Wages Expense - Increase in Wages Payable = Wages Paid in Cash 69,000 - 10,500 = 58,500 C) A/R Final = A/R Initial + Sales - Cash Collected A/R Final = 36,000 + 241,000 - 224,500 = 52,500 D) CF =NI - Increase in Assets + Increase in Liabilities CF = 45,000 - 7,500 + 10,000 = 47,500

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.