(SOLVED) During the year Hepworth Company earned a net

income of
During the year Hepworth Company earned a net income of

During the year, Hepworth Company earned a net income of $61,725. Beginning and ending
balances for the year fo
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earned-a-net-income-of
During the year Hepworth Company earned a net income of

During the year, Hepworth Company earned a net income of $61,725. Beginning and ending
balances for the year for selected accounts are as follows:

There were no financing or investing activities for the year. The above balances reflect all of the
adjustments needed to adjust net income to operating cash flows.

Required:

1. Prepare a schedule of operating cash flows using the indirect method.

2. Suppose that all the data in used Requirement 1 except that the ending accounts payable
and cash balances are not known. Assume also that you know that the operating cash flow for
the year was $20,475. What is the ending balance of accounts payable?

3. Hepworth has an opportunity to buy some equipment that will significantly increase
productivity. The equipment costs $25,000. Assuming exactly the same data used for
Requirement 1, can Hepworth buy the equipment using this year's operating cash flows? If not,
what would you suggest be done?

During the year Hepworth Company earned a net income of

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earned-a-net-income-of

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