The income statement of Booker T Industries Inc. for the current year ended June
ID: 2467843 • Letter: T
Question
The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows:
1
Sales
$509,600.00
2
Cost of merchandise sold
292,100.00
3
Gross profit
$217,500.00
4
Operating expenses:
5
Depreciation expense
$38,210.00
6
Other operating expenses
104,300.00
7
Total operating expenses
142,510.00
8
Income before income tax
$74,990.00
9
Income tax expense
22,110.00
10
Net income
$52,880.00
Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct”, “Add” or colons (:) will automatically appear if required.
Amount Descriptions
Cash paid for dividendsCash paid for purchase of landCash payments for income taxesCash payments for merchandiseCash payments for operating expensesCash received from customersCash received from sale of common stockCash received from sale of landNet cash flow from operating activitiesNet cash flow used for operating activities
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct”, “Add” or colons (:) will automatically appear if required.
Booker T Industries Inc.
Cash Flows from Operating Activities Section
For the Year Ended June 30
1
Cash flows from operating activities:
2
3
4
5
6
1
Sales
$509,600.00
2
Cost of merchandise sold
292,100.00
3
Gross profit
$217,500.00
4
Operating expenses:
5
Depreciation expense
$38,210.00
6
Other operating expenses
104,300.00
7
Total operating expenses
142,510.00
8
Income before income tax
$74,990.00
9
Income tax expense
22,110.00
10
Net income
$52,880.00
Explanation / Answer
CASHFLOW FROM OPERATING ACTIVITIES:
NET CASH PROVIDED BY OPERATING ACTIVITIES
(a) - (b)
a) CASH INFLOWS: Amount($) Receipt from Customer ( 509600 + 11760) 521360 b) LESS : CASH OUTFLOWS: Payment to Suppliers ( 292100 + 3500 + 8280 ) 303880 Operating Expenses ( 104300 -1010 - 3890 ) 99400 Income Tax ( 22110 + 1730 ) 23840 427120NET CASH PROVIDED BY OPERATING ACTIVITIES
(a) - (b)
94240Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.