Question: Incredibly Fast Transportation IFT began 2014 with accounts receivable inventory

Incredibly Fast Transportation (IFT) began 2014 with accounts receivable, inventory, and prepaid expenses totaling $ 56,000. At the end of the year, IFT had a total of $ 59,000 for these current assets. At the beginning of 2014, IFT owed current liabilities of $ 41,000, and at year-end ­current liabilities totaled $ 45,000.
Net income for the year was $ 76,000. Included in net income were a $ 3,100 loss on the sale of land and depreciation expense of $ 12,000.
Show how IFT should report cash flows from operating activities for 2014. IFT uses the indirect method.

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  • CreatedJuly 25, 2014
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