Use the selected data from the consolidated statements of cash flows for College Corporation for the years ended December 31,2018 and 2017,to answer the questions that follow.
(in thousands) Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreci ation Amortization of so ftware Effect of restructuring charges Deferred income taxes Gain on the disposal of fixed assets and other assets Changes in assets and liabilities (net of businesses acquired) Accounts receivable Inventories Other assets Accounts payable and accrued li abilities Other liabilities Net cash provided by operating activities Net cash used by investing activities Net cash provided by financing activities Cash and cash equival ents at end of year 2018$6,3284,475517(355)(606)(261)(2,736)738803625969,273$(6,131)$(4,993)$5,3752017$6,0934,018983(445)358(273)(3,727)432(1,087)6991,814$8,865$(6,155)$(3,090)$7,106
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Required
(A)What is the significance of the positive amounts shown above,for both years,for accounts payable and accrued liabilities?
(B)At the end of each year,College's cash balance was approximately $5 to $7 million.What does this indicate about College's cash management techniques?
Definitions:
General Journal
A fundamental accounting ledger where financial transactions are initially recorded before being transferred to specific accounts in the ledger.
Accounts Receivable
Money owed to a business by its customers for goods or services delivered on credit.
General Journal
A primary accounting record where financial transactions are initially recorded in chronological order.
Legal Fees Revenue
Income derived from fees charged for legal services provided.