70.2K

Verified Solution

Link Copied!

Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $1,875,000 Expenses: Cost of goods sold $1,080,000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense 43,000 Total expenses 1,766,000 Net income $ 109,000 Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $105,000 45,300 78,000 3,300 48,000 5,300 Year 1 $86,500 50,500 56,500 5,600 38,500 11,500 Increase (I) or Decrease (D) $18,500 (I) 5,200 (D) 21,500 (I) 2,300 (D) 9,500 (I) 6,200 (D) Required: Prepare the operating activities section of the statement of cash flows for the company using the direct method. (List cash outflows and any decrease in cash as negative amounts.) Required: Prepare the operating activities section of the statement of cash flows for the company using the direct method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash received from customers Cash paid for income taxes Cash paid for operating expenses Cash paid to suppliers Net cash flows from operating activities

Answer & Explanation Solved by verified expert

See Answer