help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Statement of Cash Flows Cloe's Costumes, Inc

Statement of Cash Flows Cloe's Costumes, Inc

Accounting

Statement of Cash Flows Cloe's Costumes, Inc. has net cash flows from operating activities for the last year of $244 million. The income statement shows that net income is $150 million and depreciation expense is $85 million. During the year, the change in inventory on the balance sheet was a decrease of $14 million, change in accrued wages and taxes was a decrease of $15 million and change in accounts payable was a decrease of $10 million. At the beginning of the year the balance of accounts receivable was $45 million. What was the end of year balance for accounts receivable?

 

$20 million

 

$25 million

 

$45 million

 

$65 million

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of Ending Balance of Accounts Receivables:

Net Cash Flow from Operating Activities = Net Income + Depreciation + Decrease in Inventory - Decrease in Accrued wages and taxes + Decrease in Accounts Payable + (Beginning Accounts Receivable - Ending Accounts Receivable)

$244 million = $150 millions + $85 millions + $14 millions - $15 millions - $10 millions + ($45 millions - Ending Accounts Receivable)

$244 million = $224 millions + ($45 millions - Ending Accounts Receivable)

Ending Accounts Receivable = $224 millions + $45 millions - $244 million 

Ending Accounts Receivable = $25 millions

So, the correct option is 2nd "$25 millions".

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)