Alpesh Castile Incorporated had a beginning balance of $2,100 in its Accounts Receivable account. The ending balance of AccountsReceivable was $2,800. During the period, Castile recognized $55,000 of revenue on account. Castile's Salaries Payable account hasa beginning balance of $1,550 and an ending balance of $1,000. During the period, the company recognized $42,300 of accruedsalary expense.Requireda. Based on the information provided, determine the amount of net income.b. Based on the information provided, determine the amount of net cash flow from operating activities.ab.Net incomeNet cash flow from operatingactivities$ 12,700$ 11,480 X

The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…

Answered: a. Based on the information provided,…

a. Based on the information provided, determine the amount of net income. b. Based on the information provided, determine the amount of net cash flow from operating activities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Alpesh

Castile Incorporated had a beginning balance of $2,100 in its Accounts Receivable account. The ending balance of Accounts
Receivable was $2,800. During the period, Castile recognized $55,000 of revenue on account. Castile's Salaries Payable account has
a beginning balance of $1,550 and an ending balance of $1,000. During the period, the company recognized $42,300 of accrued
salary expense.
Required
a. Based on the information provided, determine the amount of net income.
b. Based on the information provided, determine the amount of net cash flow from operating activities.
a
b.
Net income
Net cash flow from operating
activities
$ 12,700
$ 11,480 X

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