|Depreciation and amortization||350|
|Decrease (Increase) in accounts receivable||(10)|
|Decrease (Increase) in inventory||200|
|Decrease (Increase) in prepaid expenses||80|
|Increase (Decrease) in trade payables||(300)|
|Increase (Decrease) in taxes payable||75|
|Cash flow from operations||$1,395|
a. If Tracy shows cost of goods sold of $2,050 on its income statement, cash paid to suppliers is?
b. If Tracy shows depreciation expense of $275 in its income statement, cash paid for amortization is?
An income statement is one of the important financial statements. It represents a summarized report on revenues and expenses for the period ended. The difference between the revenues and expenses is the net income.
Answer and Explanation:
First, we compute the amount of inventory purchased. A decrease means that the ending balance is less than the beginning balance of the...
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2