The income statement of Kodiak Industries Inc. for the current year ended June 3
ID: 2493922 • Letter: T
Question
The income statement of Kodiak Industries Inc. for the current year ended June 30 is as follows:
Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:
1,820*
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash
Sales $344,120 Cost of merchandise sold 195,390 Gross profit $148,730 Operating expenses: Depreciation expense $26,410 Other operating expenses 69,810 Total operating expenses 96,220 Income before income tax $52,510 Income tax expense 14,570 Net income $37,940Explanation / Answer
Cash collection from Customers $ Sales 344120 Add: decrease in accounts receivable 7630 351750 Cash payment to suppliers $ purchase 195390 Add: increase in inventory 2660 198050 add: decrease in accounts payable 5430 203480 Cash Operating Expense $ Operating expense 96220 less: depreciation -26410 69810 Less: decrease in prepaid expense -2540 67270 less: increase in accrued expense -760 66510 Income tax paid $ Income tax expense for the year 14570 add: decrease in income tax payable 1820 16390 Cash flow from operating activities $ Collection from sale 351750 Less: Cash paid for operating expense -66510 Cash paid to suppliers -203480 Income tax paid -16390 Net cash flow from Operating activities 65370
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