Balances of the Current Asset and Current Liability Accounts at the End

question 152

Essay

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
$\begin{array}{lr}&\underline { \text { End}}&\underline { \text { Beginning }}\\ \text { Cash } & \$ 67,000 &\$ 73,000 \\\text { Accounts receivable net } & 73,000 &60,000 \\\text { Inventories } & 54,000&47,000 \\\text { Accounts payable } \\\text { merchandise creditors } & 43,000 &37,000 \\\text { Salaries payable } & 2,800 &3,800 \\\text { Sales on account } & 210,000 \\\text { Cost of merchandise sold } & 70,000\\\text { Operating expenses other than depreciation }& 67,000\end{array}$ Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

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Definitions:

Hypothetical Syllogism

A form of logical argument where two conditional statements lead to a conclusion, assuming the first one implies the second.

Trivia Contest

A competition in which participants answer questions about miscellaneous and insignificant facts.

Hypothetical Syllogism

A form of logical argument where two conditional statements are followed by a conclusion that is logically inferred from them.

Fallacy

An erroneous argument or reasoning, often due to a misuse or misunderstanding of logic.