Computing Cash from Operations
Brinkerhoff Inc. had the following operating balances for 2008:
|
|
December 31, 2008 |
January 1, 2008 |
|
Accounts Payable |
$57,200 |
$69,500 |
|
Inventory |
34,400 |
37,300 |
|
Accounts Receivable |
84,000 |
89,500 |
All purchases of inventory were on account.
Brinkerhoff provides the following income statement information for 2008:
|
Revenues |
$ 980,000 |
|
Cost of goods sold |
(400,000) |
|
Other expenses |
(136,000) |
|
Depreciation expense |
(107,000) |
|
Loss on sale of equipment |
(12,000) |
|
Net income |
$ 325,000 |
Compute cash from operations.