Monday 1 October 2012

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:

 

2014

2013

Increase/decrease

Cash

 $          33,000

 $          18,000

 $                      15,000

account receivable

 $          22,000

 $          35,000

 $                    (13,000)

Inventory

 $        170,000

 $        115,000

 $                      55,000

Total assets

 $        225,000

 $        168,000

 $                      57,000

 

The change in accounts receivable will be shown as a positive cash flow in the adjustments to Net income.

·         True

·         False



CLICK HERE TO GET THE ANSWER !!!!

No comments:

Post a Comment