1000 points The following schedule relates the income statement with cash fows f

Question

1000 points The following schedule relates the income statement with cash fows from operating activites, derived by both the direct and indirect methods. Some elements necessary to complete the schedule are missing. Complete the schedule by determining each of the following missing elements (Amounts to be deducted should be indicated with a minus sign. Cash tows from operating Activities Direct Method Income Statement 26 Cash received from austomers 520 Decrease in accounts receivable (44) Not reported no cash effect) 40 Gain on sale of equipment Gain on sale of equipment Increase in inventory Cost goods sold 38 Cash paid to suppliers Increase in accounts payable 26 cash pad to employees 29 cash pad for Depreciation expense Cash paid for interest in bond dincount 29 Cash paid for insurance (61) Decrease in prepaid inuranoe 2s Not reported-no cash foot) Loss on sale of land on sale Ward inarease in income tax payabe Veoeme tax expenne a7 Net cash nows from operating activities 299 Net eash flows from operating activities command

Explanation / Answer

Cash paid to supplier=Cost of Good sold+Increase in Inventory-Increase in accounts payable -194=-COGS-32+38 COGS=194-32+38 -200 Cash Paid For Interest= Interest Expense-decrease in Bonds discount 29= Int-9 Interest Expense -38 (I don’t know why cash paid for interest is coming worong it will be calculated with this formula only Net Income= 299-200-38 61 Increase In Income Tax Payable Cash paid for interest= Income Tax expense-Increse in Income Tax Payable 41=67- payable Increase In Income Tax Payable 26 Cash paid for Depreciation 0 Cash received from customers Net Sales+decrease in Accounts receivable 520+26 546 Cash paid for Insurance Insurance Expense-Decrease in Prepaid Insurance 61-29 -32

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