A. Prepare the operating activities section of a cash flow statement, in GOOD FO

Question

A. Prepare the operating activities section of a cash flow statement, in GOOD FORM, for Brice Company for the year ended Dec 31, 2014. Use the indirect method.

A. Prepare the operating activities section of a cash flow statement, in GOOD FORM, for Brice Company for the year ended Dec 31, 2014. Use the direct method

Brice Corporation reported the following information: 2010 Income Statement: Sales Revenue Cost of goods sold Gross profit Operating expenses (includes $200,000 depreciation expensc) Pretax income Income tax expense (30% rate) Net Income 8.200,000 6.400,000 1,800,000 250.000 550,000 165.000 $ 385.000 Balance Sheet Accounts receivable Inventor Prepaid expenses Accounts pavable Accrued liabilities Income taxes payable Unearned revenue 2010 800,000 520,000 110.000 340,000 80,000 25,000 00.000 2009 600,000 480,000 120,000 310,000 90,000 40,000 200,000

Explanation / Answer

Indirect Method:

Net Income: 385,000

Increase in accout receivable: (200,000)
increase in invenotry:( 40,000)
increase in account payable:30,000
increase in income tax payable: (15,000)

=385000-200000-40000+30000-15000=160,000

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