The Income Statement and a Partial Balance Sheet of Hart

question 35

Essay

The income statement and a partial balance sheet of Hart Alloy Company for the year ended December 31,2018 is presented below.Prepare the operating activities section of the statement of cash flows using the direct method.Accrued Liabilities relate to miscellaneous operating expenses.
$\begin{array}{llr}&\text { Hart Alloy Company}\\&\text { Income Statement}\\&\text { For the Year Ended December 31, 2018}&\\\text { Sales Revenues } && \$ 1,500,000 \\\text { Cost of Goods Sold } && 1,170,000 \\\text { Gross Profit } && \$ 330,000\end{array}$
Operating Expenses:
$\begin{array}{ll}\text { Salaries Expense } & \$ 210,000 \\\text { Depreciation Expense } & 60,000 \\\text { Miscellaneous Expenses } & \underline{30,000}& \underline{300,000}\\\text { Net Income } && \underline{\$30,000}\end{array}$ $\begin{array}{c}\text { Hart Alloy Company}\\\text { Partial Balance Sheet}\\\text { December 31,2018 and 2017}\\\begin{array}{lll}&2018&2017\\\text { Cash } & \$ 240,000 & \$ 195,000 \\\text { Accounts Receivable (net) } & 150,000 & 150,000 \\\text { Inventories } & 306,000 & 258,000 \\\text { Accrued Liabilities } & 13,500 & 15,000 \\\text { Accounts Payable (Merchandise Inventory) } & 174,000 & 153,000 \\\text { Salaries Payable } & 22,500 & 18,000\end{array}\end{array}$

Grasp the principles of the net present value method and its use in comparing different investment projects.

Learn how to calculate and interpret the internal rate of return and its implications on investment attractiveness.

Understand the cash payback period and its usage in assessing investment recovery times.

Recognize the impact of the time value of money on capital budgeting techniques.

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Definitions:

Persuasive Approach

A method or strategy designed to convince or influence others to adopt a certain viewpoint or to take a specific action.

Routine Request

Routine request involves asking for something that is considered normal or standard within a particular context or operation.

Best Practices

Methods or techniques that have been generally accepted as superior to any alternatives because they produce results that are superior to those achieved by other means.

Justifying

Providing valid reasons or evidence to support an argument or action.