Amortization and Cash Flow Book Companys only asset as of January 1, 2010, was a copyright. During
Question:
Royalties earned from copyright use, $500,000 in cash
Cash paid for advertising and salaries, $62,500
Amortization, $50,000
Required
1. What amount of income will Book report in 2010?
2. What is the amount of cash on hand at December 31, 2010?
3. Explain how the cash balance increased from zero at the beginning of the year to its year-end balance. Why does the increase in cash not equal the income?
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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