Net income versus changes in cash

In 2010, Puckett Inc. billed its customers $60,000 for services performed. The company collected $42,000 of the amount billed. Puckett incurred $38,000 of other operating expenses on account. Puckett paid $30,000 of the accounts payable. Puckett acquired $35,000 cash from the issue of common stock. The company invested $15,000 cash in the purchase of land.

Required

Use the preceding information to answer the following questions.

a. What amount of revenue will Puckett report on the 2010 income statement?

b. What amount of cash flow from revenue will Puckett report on the statement of cash flows?

c. What is the net income for the period?

d. What is the net cash flow from operating activities for the period?

e. Why is the amount of net income different from the net cash flow from operating activities for the period…………..

Click here to view more on this paper

Click here to get similar A+ quality paper finished for you by one of our experts within the set time limit at a discounted

 
1
Kudos
 
1
Kudos

Now read this

Purchasing and Supply Management

Part -1: Based on your experience or readings, discuss the interface between Purchasing and Supply Management and Logistics Management - specifically with respect to selection of a third party logistics provider, analysis of the total... Continue →