Reference no: EM131260926
Depreciation and Cash Flow
O'hare Company's only asset as of January 1, 2016, was a limousine. During 2016, only the following three transactions occurred:
Services of $100,900 were provided on account.
All accounts receivable were collected.
Depreciation on the limousine was $17,200.
Required:
1. Develop an income statement for O'hare for 2016.
O'hare Company
Income Statement
For The Year Ended December 31, 2016 $ $
2. Determine the amount of the net cash inflow for O'hare for 2016. $
3. The amount of net income does not equal the amount of the net cash inflow because of . This is a charge which affect cash. This needs to be net income to determine the amount of net cash inflow.
4. If O'hare developed a cash flow statement for 2016 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities? $
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: O'hare Company's only asset as of January 1, 2016, was a limousine. Determine the amount of the net cash inflow for O'hare for 2016. The amount of net income does not equal the amount of the net cash inflow because of. This is a charge which affect..
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