A summary of revenues and expenses for Norwalk Company for 2013 follows: Sales . . . .
Question:
A summary of revenues and expenses for Norwalk Company for 2013 follows:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,200,000
Cost of goods manufactured and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,700,000
Selling, general, and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,300,000
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,400,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000
Net changes in working capital accounts for 2013 were as follows:
.............................................................................. Debit ..................Credit
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,000
Trade Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,000
Prepaid Expenses (selling and general) . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Accrued Expenses (75% of increase related to manufacturing
activities and 25% to general operating activities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000
Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54,000
Trade Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170,000
Depreciation on plant and equipment for the year totaled $700,000; 60% was related to manufacturing activities and 40% to general and administrative activities.
Prepare a schedule of net cash provided by (used in) operating activities for the year using the direct method.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Income Statement Adjustments Cash Flows Sales 7200000 420000 6780000 Increa...View the full answer
