Reading 34: Understanding the Cash Flow Statement - LOS d, following, reported, white, style, black

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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

fififiona

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回复 1# mayanfang1


    Thanks a lot

风吹竹面

Thanks a lot

kepei7763

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zsd425

 谢谢

cosimo

great appreciation for your generourisity

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sunzhenpeng

 Cash operating expenses 

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