The income statement of Vince Gill Company is shown below. VINCE GILL COMPANY IN
ID: 2461461 • Letter: T
Question
The income statement of Vince Gill Company is shown below.
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,969,210
$1,897,320
4,490,090
6,387,410
1,608,890
4,778,520
2,190,690
449,610
703,460
1,153,070
$1,037,620
Additional information:
Prepare the operating activities section of the statement of cash flows using the direct method.
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Cash Payments to Suppliers
Net Cash Provided by Operating Activities
Open Show Work
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,969,210
Cost of goods sold Beginning inventory$1,897,320
Purchases4,490,090
Goods available for sale6,387,410
Ending inventory1,608,890
Cost of goods sold4,778,520
Gross profit2,190,690
Operating expenses Selling expenses449,610
Administrative expenses703,460
1,153,070
Net income$1,037,620
Explanation / Answer
Statement showing cash flow from Operating Activities under Direct Method Particulars Amount Cash Flow from Operating Activities Cash Receipts from Customers 7,281,580.00 Cash payments for Operating Expense (1,372,460.00) Cash payment to suplliers (4,767,800.00) Net Cash provided by operating Activities 1,141,320.00 Sales 6,969,210.00 Decrease in Accounts Receivable 312,370.00 Total Collections from customers 7,281,580.00 Purchases 4,490,090.00 Decrease in AP 277,710.00 Total Payments to Suppliers 4,767,800.00 Selling Expenses 449,610.00 Admin Expense 703,460.00 Add : Prepaid Exp 168,690.00 Less Depreciation (69,320.00) Add: Acccrued Exp Payable Dec 120,020.00 Net Payment for Operating Exp 1,372,460.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.