Purchase Solution

Cash Flow Statement

Not what you're looking for?

Ask Custom Question

The following account information is available for Park Company for 2004.

Account Title Beginning of year End of Year
Accounts Receivable $26,000 $24,000
Merchandise Inventory 52,000 56,000
Prepaid Insurance 24,000 20,000
Accounts Payable (Inventory) 20,000 23,000
Salaries Payable 4,200 4,600

Other information:
1. Sales for the period was 180,000
2. Purchases of merchandise for the period were $90,000.
3. Insurance expense for the period was $42,000.
4. Other operating expenses (all cash) were $30,000.
5. Salary expense was $35,000.

Required:

a. Compute the net cash flow from operating activities.
b. Prepare the cash flow from operating activities section of the statement of cash flows.

Purchase this Solution

Solution Summary

The solution computes the net cash flow from operating activities and prepares the cash flow from operating activities section of the statement of cash flows.

Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.