B-16.07 Problem

B-16.07 Problem - Use the "direct" approach to...

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B-16.07 Gainesville Corporation's income statement revealed sales of $700,000; gross profit of $300,000; selling and administrative costs of $140,000; and income taxes of $45,000. The selling and administrative expenses included $10,000 for depreciation. The company's operating activities generated positive cash flow of $129,000.
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Unformatted text preview: Use the "direct" approach to demonstrate how this amount was calculated. The following additional information is available: Beginning of Period Balance End of Period Balance Account receivable $70,000 $82,000 Inventory 50,000 41,000 Accounts payable 37,000 44,000...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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