Patterson Company reported net income for the current year of-01989
This subjective question is related to the book/course
vu mgt411 Money & Banking.
It can also be found in
vu mgt411 Mid Term Solved Past Paper No. 7.
Question 1: Patterson Company reported net income for the current year of Rs. 666,000. During the year the company's accounts receivable increased by Rs. 50,000, inventory decreased by Rs. 23,000, accounts payable decreased by Rs. 55,000, pre-paid expenses increased by Rs. 35,000, and accrued expenses payable increased by Rs. 14,000. Determine the amount of cash provided by or used for operating activities by the indirect method.
Answer:
| Net income | 666,000 |
| Accounts receivable increased | (50,000) |
| Inventory decreased | 23,000 |
| Pre-paid expenses increased | (35,000) |
| Accounts payable decreased | (55,000) |
| Accrued expenses payable increased | 14,000 |
| Net cash from OP activities | 563,000 |
