Use the Following Information to Calculate at or for the Year

question 1

Essay

Use the following information to calculate at or for the year ended December 31,2014:
(a)net income, (b)retained earnings, (c)total assets,and (d)cash.

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Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash provided by operating activities.

Direct Method

A cash flow statement preparation approach that shows the specific sources of operating cash receipts and payments.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit which are payable within a year.

Merchandise Suppliers

Companies or individuals that provide products for sale to retailers, often involving wholesale transactions.