Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2 Swasey Company
Question:
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2
Swasey Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
20X1 20X2
Current assets:
Accounts receivable.........$1,500,000............$1,165,000
Inventories........................600,000...............640,000
Current liabilities:
Wages payable..................1,400,000.............1,030,000
Swasey Company
Income Statement
For the Year Ended December 31, 20X2
Revenues............................................................$ 6,000,000
Gain on sale of equipment.............................................200,000
Cost of goods sold.................................................(3,840,000)
Depreciation expense.................................................(540,000)
Interest expense.........................................................(20,000)
Net income..........................................................$ 1,800,000
Required:
Compute operating cash flows using the indirect method.
Step by Step Answer:
Managerial Accounting The Cornerstone of Business Decision Making
ISBN: 978-1337115773
7th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger