Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent
Question:
Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:
Income statement data (in thousands):
Net income..................................................................$49,311
Gain on disposal of property................................................1,188
Depreciation expense........................................................11,580
Other items involving noncash expense.....................................1,383
Balance sheet data (in thousands):
Increase in accounts receivable.............................................1,746
Decrease in inventory...........................................................990
Increase in prepaid expenses...................................................605
Decrease in accounts payable and other current liabilities..............1,705
a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method for National Beverage Co.
b. Interpret your results in part (a).
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac