The income statement of Shultz Inc. is presented below Shultz Inc. Income Statem

Question

The income statement of Shultz Inc. is presented below Shultz Inc. Income Statement for the year ended December 31, 2017 socoo 53 450000 Sales Revenue Cost of goods sold Beginning investory Purchases Goods available for sale Ending inventory S 950 000 2 200 000 3150 Gross proft Operating expenses 1 100 000 Selling expenses Adoinistrative expenses 225 000 50 000 575 000 $525 000 Net income Comparative statement of fissancial position extracts at December 31 2016 2017 Acoouats receirvable $355 000 200 000 95 000 67 500 27 500 205 000 95 000 Prepaid (selling) expenses payable od salaries payable 205 000 87 500 Property, Plans and Equipmest 205 000 Accummiated Depreciation Additional infomation of alaries, geberal expenses and deprociation Required: Prepare the operating 2017, for Straltar Inc, using A. Direct imehod activities section of tho staliesmest of cash dows for the year ended December 31 19 marka) 4 (6 marks B. Indirect method lep 0-F

Explanation / Answer

Requirement A:

Statement of Cash Flows from operating Activities by Direcct Method:

Requirement B:

Statement of Cash Flows from operating activities by Indirect Method:

Shultz Inc Statement of Cash Flows from operating activities For the year ended December 31 2017 Cash from operating activities Cash from sales 3605000 Cash paid for purchases -2337500 Selling Expenses (225000-10000+95000) -310000 Administrative Expenses -380000 577500

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.