Emerald Golf Inc. reported a net cash flow from operating activities of $86,700 on its statement of

Question:

Emerald Golf Inc. reported a net cash flow from operating activities of $86,700 on its statement of cash flows for the year ended December 31, 2008. The following information was reported in the cash flows from operating activities section of the statement of cash flows, using the indirect method:

Decrease in income taxes payable . $2,000

Decrease in inventories ....... 5,600

Depreciation .......... 8,500

Gain on sale of investments .... 3,400

Increase in accounts payable ..... 1,200

Increase in prepaid expenses ..... 700

Increase in accounts receivable .... 4,300

Determine the net income reported by Emerald Golf Inc. for the year ended December 31, 2008.

Accounts Payable
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Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...