Mega Screens Inc. reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income...

 

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Mega Screens Inc. reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income tax expense of $150,000 for the year ended December 31, 2018. Selected balance sheet accounts are as follows: Increase (I) or Decrease (D) $45,000 (D) 55,000 (1) 2017 2018 $150,000 285,000 Cash Accounts receivable Inventory Accounts $195,000 230,000 125,000 120,000 165,000 137,000 40,000 (D) 17,000 (D) payable Income tax payable 25,000 16,000 9,000 (1) Required: a) Calculate cash received from customers, cash paid to suppliers, and cash paid fo income taxes. (6 marks) b) Why might a company's operating profit in a particular period be different from i cash flow from operations? (3 marks) c) Is cash flow more reliable than accounting profit? Which one is more useful? marks) Mega Screens Inc. reports net sales of $3,200,000, cost of goods sold of $2,000,000, and income tax expense of $150,000 for the year ended December 31, 2018. Selected balance sheet accounts are as follows: Increase (I) or Decrease (D) $45,000 (D) 55,000 (1) 2017 2018 $150,000 285,000 Cash Accounts receivable Inventory Accounts $195,000 230,000 125,000 120,000 165,000 137,000 40,000 (D) 17,000 (D) payable Income tax payable 25,000 16,000 9,000 (1) Required: a) Calculate cash received from customers, cash paid to suppliers, and cash paid fo income taxes. (6 marks) b) Why might a company's operating profit in a particular period be different from i cash flow from operations? (3 marks) c) Is cash flow more reliable than accounting profit? Which one is more useful? marks)

Answer rating: 100% (QA)

43 a Sales 3200000 Less Increase in Accounts Receivable 55000 3145000 44 45 Cash re... View the full answer