Computation of Operating Cash Flows
the Financial Statements of Packard

question 127

Essay

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

Explain the process and requirements for establishing a limited liability company.

Analyze the differences between general and limited partners, especially in terms of liability and management participation.

Understand the implications of incorrect or incomplete filing procedures for business entities.

Describe the rights and duties of LLC members.

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Definitions:

Monetarists

Economists who posit that variability in the money supply critically impacts the short-term national economic output and the price level over longer spans.

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.

Economic Behaviorists

Economic Behaviorists study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions, and the consequences these decisions have on market prices, returns, and the allocation of resources.

Rational Behavior

Rational behavior refers to the decision-making process that involves choosing the most efficient means to achieve a desired result.