Lori Crump owns a small trucking operation. The bookkeeper presented Crump with the following income statements and
Question:
Crump does not understand how the company can be $17,600 ahead of last year in terms of cash on hand and yet show an $11,000 loss for the year.
Required:
Prepare a cash flow statement (indirect method) to use in explaining this to Lori Crump.
Transcribed Image Text:
INCOME STATEMENTS 2010 2009 Revenues $191,400 5182,600 Operating expenses: Depreciation Fuel Drivers' salaries Tax and licenses Repairs Miscellaneous $26,400 77,000 44,000 22,000 30,800 2,200 26,400 46,200 35,200 17,600 19,800 1,100 202,400 5(11,000) 146,300 36,300 Income (Loss) Balance Sheets 12/31/10 12/31/09 Cash Accounts receivable Net fixed assets 22,000 8,800 198,000 $228,800 5 4,400 26,400 224,400 5255,200 Total Assets Accounts payable Accrued salaries Other accruals Long-term debt Crump, capital S 30,800 8,800 3,300 100,100 85,800 $228,800 5 22,000 5,500 1,100 129,800 96,800 $255,200 Total Liabilities and Capital
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Net loss 11000 Depreciation 26400 15400 Accounts receivable reduce...View the full answer
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Related Book For
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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