Given the Following Data: Income Statement

question 28

Essay

Given the following data: Income Statement
For Year Ended Dec. 31, 2011 Additional information:
1.Increase in accounts receivable during 2011 - $25,000
2.Decrease in inventory during 2011 - $13,000
3.Decrease in accounts payable during 2001 - $28,000
4.Sale of old equipment for cash - $65,000
5.Dividends declared - $45,000; dividends paid - $40,000
6.New building acquired by issuing common shares - $42,000
7.Sold bonds for cash - proceeds of $75,000
What was net cash inflow (outflow) from operating activities during 2011?

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Definitions:

Average Collection Period

The mean number of days a company waits to get payments from customers for products or services provided on credit.

Balance Sheet

A document showcasing a corporation's assets, obligations, and the equity held by shareholders on a specific date.

Sales On Account

Transactions where goods or services are delivered but payment is delayed, creating an account receivable on the balance sheet.

Average Sale Period

The average sale period is a financial metric indicating the average time taken to convert inventory into sales, also known as the inventory turnover period.