Majestic Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $67,000. At the end

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Majestic Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $67,000. At the end of the year, Majestic had a total of $77,000 for these current assets. At the beginning of the year, it owed current liabilities of $42,000, and at year-end, current liabilities totaled $39,000.
Net income for the year was $80,000. Included in net income was a $6,000 gain on the sale of land and depreciation expense of $7,000.
Show how Majestic should report cash flows from operating activities for the year. The company uses the indirect method.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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