Use the following balance sheet information and other data to determine net cash from operating activities:
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Dec. 31, 19X1
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Dec. 31, 19X2
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Accounts Receivable
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$ 4,000
|
$ 7,000
|
|
Merchandise Inventory
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10,000
|
8,000
|
|
Prepaid Insurance
|
1,000
|
700
|
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Accounts Payable
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12,000
|
6,000
|
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Rent Payable
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9,000
|
16,000
|
|
Dividends Payable
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2,000
|
2,500
|
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Bonds Payable
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50,000
|
40,000
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Other Data:
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(1)
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Net income
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$25,000
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|
(2)
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Depreciation expense
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5,000
|
|
(3)
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Amortization of Franchise Fee
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3,000
|
|
(4)
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Amortization of bond premium
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900
|
|
(5)
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Amortization of patent
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1,400
|
|
(6)
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Gain on sale of plant
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4,400
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