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:
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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.