Question Details

The income statement of Reagan Inc. for the year 



aEx. 1
The general ledger of Link Company provides the following information:
	End of Year	Beginning of Year
	Accounts Receivable	$  55,000	$  94,000
	Inventory	310,000	210,000
	Accounts Payable	40,000	65,000
The company's net sales for the year was $2,200,000 and cost of goods sold amounted to $1,500,000.
Instructions
Compute the following:
(a)	Cash receipts from customers.
(b)	Cash payments to suppliers.


aEx. 2
The income statement of Reagan Inc. for the year ended December 31, 2014, reported the following condensed information:
	Service revenue	$700,000
	Operating expenses	  340,000
	Income from operations	360,000
	Income tax expense	    50,000
	Net income	$310,000

Roman's balance sheet contained the following comparative data at December 31:
		   2014		   2013	
	Accounts receivable	$75,000	$45,000
	Accounts payable	40,000	50,000
	Income taxes payable	6,000	4,000

Reagan has no depreciable assets. Accounts payable pertains to operating expenses.

Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.




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