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Net income $1,000 Depreciation and amortization 350 Decrease (Increase) in accounts...

Question:

Net income $1,000
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?

Income Statement:

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:

Question (a)

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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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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