Use the following income statement and information about changes in noncash curr
ID: 2347808 • Letter: U
Question
Use the following income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flow from operating activities section of the statement of cash flows using the indirect method.
Sales..................................$1,818,999
Cost of goods sold................. 891,000
Gross Profit.......................... 927,000
Operating expenses
Salaries expense..............$248,535
Depreciation expense........ 43,200
Rent expense................... 48,600
Amortization expenses-patents 5,400
Utilities expense............... 19,125 364,860
562,140
Gain on sale of equipment......... 7,200
Net income............................. $569,340
Changes in current asset and current liability accounts for the year that relate to operations follow.
Account receivable......... $40,500 increase Account payable.........$13,500 decrease
Merchandise inventory........ 27,000 increase Salaries payable........ 4,500 decrease
Explanation / Answer
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.