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Question: The income statement of Guesser Company is shown b... Bookmark The income statement of...

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Accounting

Question: The income statement of Guesser Company is shown b... Bookmark The income statement of Guesser Company is shown below. GUESSER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales $755,000 Cost of goods sold 543,000 Gross profit 212,000 Operating expenses Selling expenses $52,000 Administrative expenses 89,000 141,000 Net income $ 71,000 Additional information: 1. Accounts receivable decreased $63,000 during the year. 2. Inventory increased $38,000 during the year. 3. Prepaid expenses increased $12,000 during the year. 4. Accounts payable to increased $25,000 during the year. 5. Accrued expenses payable increased $6,000 during the year. 6. Administrative expenses include depreciation expense of $20,000. Instructions Prepare the operating activities section of the statement of cash flows using the indirect method for December 31, 2014.

How would this vary under the Indirect method?

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