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Refer to the following selected financial information from Elvis, Corp. Compute the company’s days’ sales in inventory for Year 2. (Use 365 days a year.)    Year 2   Year 1   Merchandise inventory 271,000   253,500   Cost of goods sold 486,400   433,100  

The purchase of land and buildings will generally be recorded in the same ledger account.

Which of the following purposes would financial statements serve for external users?

Preparation of the statement of cash flows does not involve:

Business activities that generate or use cash are classified as operating, investing, or financing activities on the statement of cash flows.

In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:     Net income for the year was $ 52,000 Accounts payable decreased by   18,000 Accounts receivable increased by   25,000 Inventories increased by   5,000 Depreciation expense was   30,000 Net cash provided by operating activities was:

External users of financial information:

External users of accounting information manage and operate the company.

Joe Jackson opened Jackson’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: Jackson invested $25,000 cash in the business in exchange for common stock. Jackson contributed $100,000 of equipment to the business. The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March. The company provided $3,000 of services to customers on account. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from a customer for repair services to be provided in April. The company paid Jackson $5,000 cash as a dividend. Based on this information, net income for March would be:

A company that has days’ sales uncollected of 30 days and days’ sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.