1.what effect does the journal entry to book depreciation have on the amount of cash generated by operating activities?
2. the company reported depreciation expenses of 5000 and net income 8000 on its 2006 income stat. during 2006 the company's accounts recievable balance decreased by 2000. what was the amount of cash flow from Operating activities?
Please explain
2005 2006
cash 6000 11000
Acount rec. 2000 4000
prepaid insuranc 5000 4000
inventory 3000 1000
plant etc. 6000 5000
totals 22,000 25000
Account payable 4000 6000
oper. expenses pay 5000 2000
L.T notes pay. 4000 3000
stockholders equity 9000 14000
totals 22000 25000
income statement 2006
revenue 35000
cost of goods sold (20,000)
gross margin 15000
operating expenses (10,000)
net income 5000
Accounting helppp plzzz?performing show
do your own homework. i'm in accounting and that ain't even hard
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