答案和详解如下： Q1. For the year ended December 31, 2007, Challenger Company reported the following financial information: Revenue $100,000 Cost of goods sold (40,000) Cash operating expenses (20,000) Depreciation expense (5,000) Tax expense (3,000) Net income $32,000 Increase in accounts receivable $7,500 Decrease in inventory $2,500 Increase in short-term notes payable $3,000 Decrease in accounts payable $1,000 Calculate cash flow from operating activities using the direct method and the indirect method. Direct method
Indirect method
A) $31,000 $31,000 B) $31,000 $34,000 C) $34,000 $34,000 Correct answer is A) CFO is the same under both methods, the only difference is presentation. Direct method: $92,500 cash collections ($100,000 revenue – $7,500 increase in receivables) – $38,500 cash paid to suppliers (– $40,000 COGS + $2,500 decrease in inventory – $1,000 decrease in payables) – $20,000 cash operating expenses – $3,000 tax expense = $31,000. Indirect method: $32,000 net income + $5,000 depreciation expense – $7,500 increase in receivables + $2,500 decrease in inventory – $1,000 decrease in payables = $31,000. The increase in short-term notes payable is a financing activity. | 
发表于 2009-1-17 11:06
| 
