Data for Warner Company are presented in P12.7A. Further analysis reveals the following. 1. Accounts payable pertain
Question:
Data for Warner Company are presented in P12.7A. Further analysis reveals the following.
1. Accounts payable pertain to merchandise suppliers.
2. All operating expenses except for depreciation were paid in cash.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.
Instructions
a. Prepare a statement of cash flows for Warner Company using the direct method.
b. Compute free cash flow.
Data From P12.7A
Accounts 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...
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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