Question

Cash flows from operating activities for both the indirect and direct methods are presented for Reverse Logic. All amounts are in thousands (000s). $ 156 Cash Flows from Operating Activities (Indirect method) Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in income tax payable (20) 32 (13) Net cash flows from operating activities $187 $ Cash Flows from Operating Activities (Direct method) Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes 3,980 (2,569) (1,143) (81) Net cash flows from operating activities $187 Required: Complete the following income statement for Reverse Logic. Assume all accounts payable are to suppliers. (Enter your answers in thousands (i.e., 10,000,000 should be entered as "10,000).) 187 REVERSE LOGIC Income Statement For the Year Ended December 31, 2018 Net sales $ Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $ 44 156

Answer 1

Income Statement
For the Year ended December 31,2018
Net sales		4000	=3980+20
Expenses:
Cost of goods sold	2588		=2569+32-13
Operating expenses	1140		=1143-3
Depreciation expense	44
Income tax expense	72		=81-9
Total expenses		3844
Net income		156