Sales for the year are $80,000. Operating expenses for the year are $64,500. A/R Prepaid expense Unearned revenue Accrued liabilities Required: Prepare CFO using (a) the INDIRECT method, and (b) the DIRECT method. Beginning $9,000 2,560 475 1,500 Ending $6,600 3,720 1,200 1,800

Sales for the year are $80,000. Operating expenses for the year are $64,500. A/R Prepaid expense Unearned revenue Accrued liabilities Required: Prepare CFO using (a) the INDIRECT method, and (b) the DIRECT method. Beginning $9,000 2,560 475 1,500 Ending $6,600 3,720 1,200 1,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sales for the year are $80,000. Operating expenses for the year are $64,500.
A/R
Prepaid expense
Unearned revenue
Accrued liabilities
Required:
Prepare CFO using
(a) the INDIRECT method, and
(b) the DIRECT method.
Beginning
$9,000
2,560
475
1,500
Ending
$6,600
3,720
1,200
1,800

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