Computation of Operating Cash Flows
the Financial Statements of Packard

question 153

Essay

Computation of operating cash flows
The financial statements of Packard Corporation provide the following information for the current year:
$\begin{array}{lrr}&\begin{array}{c}\text { End of } \\\text { Year }\end{array} & \begin{array}{c}\text { Beginning } \\\text { of Year }\end{array} \\\text { Accounts receivable } & \$ 106,000 & \$ 98,000 \\\text { Inventory } & \$ 105,000 & \$ 120,000 \\\text { Prepaid expenses } & \$ 31,000 & \$ 29,000 \\\text { Accounts payable (for merchandise) } & \$ 74,000 & \$ 70,000 \\\text { Accrued liabilities } & \$ 30,000 & \$ 28,000 \\\text { Net sales } & \$ 848,000 & \\\text { Cost of goods sold } & \$ 318,000 & \\\text { Expenses (including depreciation of } \$ 43,000) & \$ 258,000 &\end{array}$
Using this information, compute for the current year:

Distinguish between general and limited partners in partnerships and the extent of their liability and involvement in management.

Understand the concept of a professional corporation and how it differs from other business entities in terms of management and liability.

Identify the characteristics of a joint venture and how they compare to partnerships.

Grasp the principles of co-ownership in business entities and how it relates to management and profit sharing.

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Definitions:

Input

Resources, data, or efforts put into a system or process in order to achieve outcomes or results.

Special Type

A unique or distinct category, characterized by specific attributes that set it apart from others.

Inventory Analysis

The examination and evaluation of stock items to manage inventory levels, forecast needs, and improve efficiency in the supply chain.

Queuing Theory

The mathematical study of waiting lines or queues, which aims to predict queue lengths and waiting times in various service or process systems.