The accounting records of United Company provided the data below. Net Income Depreciation expense Increase in salaries payable Increase in accounts receivable $40,000 12,000 11,000 14,000 4,800 700 Decrease in inventory Amortization of patent Decrease in premium on bonds payable 500 Required: Show all work A. Based on the information provided, determine the net cash flows from operating activities for United Company. Provide your response and your work in the space below B. Determine the Quality of Income for United Company. Specify if it is of low quality or high quality and briefly explain. Provide your responses and your work in the space below.

The accounting records of United Company provided the data below. Net Income Depreciation expense Increase in salaries payable Increase in accounts receivable $40,000 12,000 11,000 14,000 4,800 700 Decrease in inventory Amortization of patent Decrease in premium on bonds payable 500 Required: Show all work A. Based on the information provided, determine the net cash flows from operating activities for United Company. Provide your response and your work in the space below B. Determine the Quality of Income for United Company. Specify if it is of low quality or high quality and briefly explain. Provide your responses and your work in the space below.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.20MCE

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