The following information was taken from the 2014 financial statements of Zurich Corporation, a maker of fine
Question:
Net income .......... $(200,000)
Depreciation .......... 50,000
Increase (decrease) in
Accounts receivable ...... (140,000)
Inventories ............ 25,000
Other current assets ....... 10,000
Accounts payable ....... 120,000
Accrued payables ....... (25,000)
Interest payable ......... 50,000
Required:
1. Calculate Zurich’s cash flow from operating activities for 2014.
2. Explain the reasons for the difference between the firm’s net income and its cash flow from operating activities in 2014.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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