Question

You are provided the following information about Brooks Ltd. (Brooks) for fiscal 2017:
Net income................. $ 877,500
Accounts receivable on July 1, 2016........ 292,500
Accounts receivable on June 30, 2017........ 375,000
Inventory on July 1, 2016 ............. 1,162,500
Inventory on June 30, 2017 ............ 1,432,500
Accounts payable on July 1, 2016........ 675,000
Accounts payable on June 30, 2017 ........ 735,000
Unearned revenue on July 1, 2016 ........ 1,500,000
Unearned revenue on June 30, 2017 ........ 375,000
Depreciation expense for 2017 ........... 300,000

Required:
Calculate cash from operations for Brooks for fiscal 2017. Provide a brief explanation for the difference between net income and cash from operations.



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  • CreatedFebruary 26, 2015
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