Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported sales of $390,000 and $220,000 and cost of goods sold of $160,000 and $104,500, respectively. Powers inventory increased by $33,000, but Surges decreased by $14,000. Powers accounts receivable increased by $19,000 and its accounts payable decreased by $16,000 during 20X4. Surges accounts receivable decreased by $9,000 and its accounts payable increased by $5,000.
Required: Assuming there were no other cash flows from operations, using the direct method of computing cash flows from operating activities, compute the following:
Answer is complete but not entirely correct. a. Cash received from customers b. Cash payments to suppliers c. | Cash flows from operating activities $ 572,000 $ 304,500 $ 267,500
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
