Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

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
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.