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current year depreciation expense is 25000 what amount should the company report as net income for 2013

User BlackCat
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Answer:

Note:The full question is attached as picture below

1 Jan 31 Dec Increase/(Decrease)

Accounts receivables $80,000 $100,000 $20,000

Inventory $60,000 $70,000 $10,000

Prepaid Expenses $100,000 $75,000 ($25,000)

Accounts Payable $120,000 $100,000 ($20,000)

Deferred Revenue $65,000 $95,000 $30,000

Particulars Amount

Net Cash Flows from Operating Activities $200,000

Less Increase in Current Liabilities

Deferred Revenue ($30,000)

Less Decrease in Current Assets

Prepaid Expenses ($25,000)

Add Decrease in Current Liabilities

Accounts Payable $20,000

Add Increase in Current Assets

Accounts receivables $20,000

Inventory $10,000

Less: Depreciation Expenses ($25,000)

Net Income for 2013 $170,000

current year depreciation expense is 25000 what amount should the company report as-example-1
User Suat Atan PhD
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