LUS o, Intermediate Accounting, 16e RCES Exercise 23-4 The income statement of C
ID: 2576071 • Letter: L
Question
LUS o, Intermediate Accounting, 16e RCES Exercise 23-4 The income statement of Coronado Company is shown below. CORONADO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,840,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,920,000 4,390,000 6,310,000 1,580,000 Study 4,730,000 2,110,000 Gross profit Operating expenses Selling expenses Administrative expenses 460,000 710,000 1,170,000 $940,000 Net income Additional information: 1. Accounts receivable decreased $350,000 during the year 2. Prepaid expenses increased $160,000 during the year 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses indude depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method. CORONADO COMPANY Statement of Cash lows (Partial) LINK TO TEXT LINK TO TEXTExplanation / Answer
for the year ending December 31,2017
cash paid to suppliers
(4,730,000+280,000+340,000) = 4,670,000
cash paid for operating expense
(1,170,000-50,000+160,000+100,000) = 1,380,000
for the year ending December 31,2017
cash from operating activities cash recieved from customers (6,840,000+350,000) 7,190,000cash paid to suppliers
(4,730,000+280,000+340,000) = 4,670,000
cash paid for operating expense
(1,170,000-50,000+160,000+100,000) = 1,380,000
6,050,000 cash from operating activities 1,140,000Related Questions
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