Fitzpatrick Companys calendar-year 2013 income statement shows the fol.docx

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Fitzpatrick Company reported net income of $374,000 in 2013. Their income statement also shows depreciation expense of $44,000, amortization expense of $7,200, and a gain on sale of plant assets of $6,000. An examination of the company's current assets and liabilities revealed decreases in accounts receivable of $17,100 and merchandise inventory of $42,000, as well as increases in prepaid expenses of $4,700 and other payables of $1,200, while accounts payable decreased by $8,200.

Formation

Fitzpatrick Companys calendar-year 2013 income statement shows the following: Net Income,
$374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant
Assets, $6,000. An examination of the companys current assets and current liabilities reveals the
following changes (all from operating activities): Accounts Receivable decrease, $17,100;
Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable
decrease, $8,200; Other Payables increase, $1,200.
Fitzpatrick Companys calendar-year 2013 income statement shows the following: Net Income,
$374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant
Assets, $6,000. An examination of the companys current assets and current liabilities reveals the
following changes (all from operating activities): Accounts Receivable decrease, $17,100;
Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable
decrease, $8,200; Other Payables increase, $1,200.
Solution
H ello Pal,
F irst of all a very nice as well as intersting question from your side.
W here or what is the question here. Please provide the same.
R egards.

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