Use the following balance sheet information and other data to determine net cash from operating activities:
|
Dec. 31, 19X1 |
Dec. 31, 19X2 |
|
|
Accounts Receivable |
$ 4,000 |
$ 7,000 |
|
Merchandise Inventory |
10,000 |
8,000 |
|
Prepaid Insurance |
1,000 |
700 |
|
Accounts Payable |
12,000 |
6,000 |
|
Rent Payable |
9,000 |
16,000 |
|
Dividends Payable |
2,000 |
2,500 |
|
Bonds Payable |
50,000 |
40,000 |
Other Data:
|
(1) |
Net income |
$25,000 |
|
(2) |
Depreciation expense |
5,000 |
|
(3) |
Amortization of Franchise Fee |
3,000 |
|
(4) |
Amortization of bond premium |
900 |
|
(5) |
Amortization of patent |
1,400 |
|
(6) |
Gain on sale of plant |
4,400 |