Question

In: Accounting

a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of...

a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of equipment $11,000, and provided the following information for 2029:

	2019	2018
Accounts receivable	52,000	18,000
Prepaid insurance	20,000	30,000
Accounts payable	35,000	11,000
Taxes payable	8,000	29,000
Wages payable	49,000	5,000

Using the indirect method, how much was Titan's net cash provided by operating activities?

b. On April 1, 2017, Titan Inc. 6% annual interest-bearing note payable for $60,000. The note has a maturity date of March 30, 2020. Assuming that Titan maintains its books on a calendar year basis, how much interest expense should be reported in the 2018 income statement?

Thank you!

Expert Solution

Solution:-

a. Using the indirect method, how much was Titan's net cash provided by operating activities: -

Titan's net cash provided by operating activities

369,000

Explanation:-

b. How much interest expense should be reported in the 2018 income statement: -

Interest expense should be reported in the 2018 income statement

3,600

Explanation:-

= $3,600

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ekkarill92 answered 2 years ago

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