Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

current year depreciation expense is 25000 what amount should the company report as net income for 2013

Sagot :

Tundexi

Answer:

Note:The full question is attached as picture below

                                          1 Jan         31 Dec      Increase/(Decrease)

Accounts receivables   $80,000    $100,000          $20,000

Inventory                        $60,000    $70,000           $10,000

Prepaid Expenses         $100,000   $75,000           ($25,000)

Accounts Payable         $120,000   $100,000         ($20,000)

Deferred Revenue        $65,000     $95,000           $30,000

Particulars                                                              Amount

Net Cash Flows from Operating Activities          $200,000

Less Increase in Current Liabilities

Deferred Revenue                                                 ($30,000)

Less Decrease in Current Assets

Prepaid Expenses                                                 ($25,000)

Add Decrease in Current Liabilities

Accounts Payable                                                  $20,000

Add Increase in Current Assets

Accounts receivables                                             $20,000

Inventory                                                                 $10,000

Less: Depreciation Expenses                               ($25,000)

Net Income for 2013                                             $170,000

View image Tundexi
We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.