Question

A comparative balance sheet and income statement is shown for Ehrens Corporation. 2018 Difference $ EHRENS CORPORATION Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 24,640 Accounts receivable, net 27,790 Inventory 80,120 Prepaid expenses 7,390 Total current assets 139,940 Equipment 190, 500 Accum. depreciation-Furniture (33,550) Total assets $296,890 Liabilities and Equity Accounts payable $ 65,000 Wages payable 10, 720 Income taxes payable 18,750 Total current liabilities 94, 470 Bonds payable 100,000 Total liabilities 194,470 Equity Common stock, $5 par value 75,000 Retained earnings 27,420 Total liabilities and equity $296,890 $ 23,040 23,280 58,710 9,120 114,150 145,500 (31,200) $228,450 1,600 4,510 21,410 (1,730) 25,790 45,000 2,350 68,440 $ $ $ 38, 380 12,200 22,310 72,890 55,000 127,890 26,620 (1,480) (3,560) 21,580 45,000 66,580 75,000 25,560 $228,450 0 1,860 68,440 $ EHRENS CORPORATION Income Statement For Year Ended December 31, 2019 Sales $240,000 Cost of goods sold 80,900 Gross profit 159,100 Operating expenses Depreciation expense $29,400 Other expenses 58,400 87,800 Income before taxes 71,300 Income taxes expense 27,650 Net income $ 43,650

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. $ 43,650 $ 29,400 Cash flow from operating activities: Net Income Adjustment to reconcile net income to operating cash flow income statement items not affecting cash Depreciation Expense Change in current assets and liabilities: Increase in Accounts Receivable Increase in Inventory Decrease in prepaid expense Increase in accounts payable Decrease in wages payable Decrease in income tax payable $ -4,510 $ -21,410 $ 1,730 $ 26,620 S -1,480 $ 3,560 Cash flow from operating activities $ 77,560