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Required: Construct the cash from the operating activities section of the SCF.

Required: Construct the cash from the operating activities section of the SCF.

FINANCIAL ACCOUNTING
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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**The Bogue Street Hotel: Current Account Balances** At the beginning and end of the year, the Bogue Street Hotel's current account balances were as follows: ### Current Assets: - **Cash** - Beginning: $10,000 - End: $15,000 - **Accounts Receivable** - Beginning: $100,000 - End: $90,000 - **Food Inventory** - Beginning: $20,000 - End: $25,000 - **Prepaid Expenses** - Beginning: $5,000 - End: $6,000 - **Total Current Assets:** - Beginning: $135,000 - End: $136,000 ### Current Liabilities: - **Accounts Payable** - Beginning: $52,000 - End: $60,000 - **Wages Payable** - Beginning: $10,500 - End: $12,000 - **Interest Payable** - Beginning: $9,000 - End: $7,500 - **Taxes Payable** - Beginning: $5,400 - End: $7,500 - **Total Current Liabilities:** - Beginning: $76,900 - End: $87,000 ### Additional Information: - The hotel had total revenue of $3,500,800. - Expenses were $2,900,400. - Depreciation during the year amounted to $75,200. **Required:** Construct the cash from the operating activities section of the Statement of Cash Flows (SCF). --- To construct the cash flow from operating activities, details such as changes in working capital components (like accounts receivable, inventory, and payable accounts) as well as the non-cash expenses (like depreciation) need to be analyzed.
Transcribed Image Text:**The Bogue Street Hotel: Current Account Balances** At the beginning and end of the year, the Bogue Street Hotel's current account balances were as follows: ### Current Assets: - **Cash** - Beginning: $10,000 - End: $15,000 - **Accounts Receivable** - Beginning: $100,000 - End: $90,000 - **Food Inventory** - Beginning: $20,000 - End: $25,000 - **Prepaid Expenses** - Beginning: $5,000 - End: $6,000 - **Total Current Assets:** - Beginning: $135,000 - End: $136,000 ### Current Liabilities: - **Accounts Payable** - Beginning: $52,000 - End: $60,000 - **Wages Payable** - Beginning: $10,500 - End: $12,000 - **Interest Payable** - Beginning: $9,000 - End: $7,500 - **Taxes Payable** - Beginning: $5,400 - End: $7,500 - **Total Current Liabilities:** - Beginning: $76,900 - End: $87,000 ### Additional Information: - The hotel had total revenue of $3,500,800. - Expenses were $2,900,400. - Depreciation during the year amounted to $75,200. **Required:** Construct the cash from the operating activities section of the Statement of Cash Flows (SCF). --- To construct the cash flow from operating activities, details such as changes in working capital components (like accounts receivable, inventory, and payable accounts) as well as the non-cash expenses (like depreciation) need to be analyzed.
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