[pacific1]

So, a question…can you see how much cash was collected by looking only at the income statement? I know how to find this with the balance sheet and the statement of cash flows but the question says to use only the income statement?

[HustlinHustlin]

by Revenues, I believe.

B 71 - 79 EXPIRED
A 69 - 75 EXPIRED
R 65 - 48 - 45
F 56 - 61 - 65 - 64

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"The fish who keeps on swimming is the first to chill upstream" -311

Experience - Done, like WAAAY done.
Still need 30 more credits, in basket weaving (gotta love new CA requirements)

[pacific1]

Thanks Hustlin, but how do you know how much of that revenue dollar amount was actually collected in cash?

[That Cartoon Mouse]

That's the only thing you're looking at, with no additional information? If the income statement was prepared using the cash method, sure. I don't believe there's any way to tell in a GAAP accrual income statement, because you recognize revenue when it's earned not collected.

Maybe you can reproduce the question here and we can help answer it?

REG 82 (10/07/11)
BEC 88 (11/01/11)
FAR 86 (11/21/11)
AUD 82 (11/30/11)
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Roger CPA Review, live & cram course

[pacific1]

Basically I have a portion of the income statement with only the items listed in categories below, they are not broken down into any other categories so I just can't see that I can get this information from what is provided.

Revenues

Operating Expenses:

Salaries and employee benefits

Purchased transportation

Rentals and landing fees

Depreciation and amortization

Fuel

Maintenance and repairs

Impairment and other charges

Other

Total Operating Expenses

Operating Income

Other Income (Expense)

Interest expense

Interest income

Total other income

Income before Income taxes

Net Income

Earnings per common share

[mla1169]

Can you post the question in its entirety? You have to know the change in A/R (which is a balance sheet account) either way. Maybe the wording of the question is whats confusing you.

Yes, there are a whole list of adjustments you have to make to net income get to the cash collected though. I don't rememember ALL of them (and yes you should know them for the exam) but for example you would have to add back depreciation because it reduces net income and is not a cash transaction it is only a paper transaction. Look up “direct method” and “indirect method” of calculating cash flows for the list in its entirety of the adjustments you would need to make.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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