The accounting records of Greggory Pharmaceuticals, Inc., reveal the following: Requirement 1. Compute cash flows from operating
Question:
Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Greggorys operating cash flow. Give the reason for yourevaluation.
Transcribed Image Text:
Payment of salaries $50,000 20,000 Net income S 44,000 Payment of income tax... 27,000 Collection of dividend and wages Depreciation expense.. 14,000 9,000 51,000 ...3,000 12,000 Acquisition of land with cash. 38,000 Increase in cuurrent revenue liabilities..20,000 Payment of interest Increase in current assets Cash s other than cash. 24,000 G on sale of land Payment of dividends.. Collection of accounts Payment of accounts receivable 119,000 payable 63,000
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Cash flows from operating activities Receipts Collections from customers 119000 51...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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