Author Question: SALESNotes Receivable and Accounts Receivable can also be called trade receivables. a. True b. ... (Read 130 times)

cmoore54 · **on:** Jul 5, 2018

SALESNotes Receivable and Accounts Receivable can also be called trade receivables.
a. True
b. False

Indicate whether the statement is true or false

Question 2

Use the following information from The Mane Event, Inc., to prepare the operating activities section of the statement of cash flows for the year ended December 31, 2011 using the indirect method.

Beginning cash balance 40,000
Cash paid for dividends (600 )
Cash received from a loan 10,000
Depreciation expense 3,000
Net change in accounts receivable (1,000 )
Net change in inventory 2,000
Net change in accounts payable 900
Net income 10,000
Proceeds from sale of studio equipment 5,000
Purchase of treasury of stock (4,000 )

Dinolord · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

The Mane Event, Inc.
Statement of Cash Flows
For the year ended December 31, 2011
Cash flows from operating activities:
Net income 10,000
Depreciation expense 3,000
Net decrease in accounts receivable 1,000
Net increase in inventory (2,000 )
Net increase in accounts payable 900
Net cash from operating activities 12,900