Question

Connected Register Pearson... SouthWesternFed Ta.. Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It For the Year Ended December 31, 2018 $ 950 Cost of goods sold Gross margin Operating expenses Depreciation Loss on sale of land Total operating expenses Operating income Other Income (expense) Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net Income HAVE COWY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 5222 $205 Change 517 Accounts receivable Inventory Salaries payable Interest payable Income taxes payable Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method < Prev 16 of 22 Next > ype here to search DELL الادارة

Answer 1

fox B2 1 A C D E 1 2 direct method 1 cash flow from operating activities $981 cash received from customers 4 cash paid to suppliers cash paid to employees cash paid for interest cash paid for income taxes gain on sale of cash equivalents -$419 5 -$250 6 -$35 7 -$63 $4 10 net cash flow from operating activities $218 11 12 indirect method 13 2. cash flow from operating activities 14 $44 15 net income adjustment for non cash effects depreciation 16 $195 17 $14 loss on sale of land 18 changes in operating assets and liabilities decrease in accounts receivable 19 $31 20 -$15 increase in increase 21 decrease in accounts payable -$29 22 decrease in salaries payable increase in interest payable decrease in income tax payable -$13 23 $10 24 -$19 25 26 net cash flow from operating activities $218 27 28 st LO LO

for formulas and calculations, refer to the image below -

fox B2 1 В C D Е 1 2 1 direct method cash flow from operating activities -950+431-400 cash received from customers 4 cash paid to suppliers cash paid to employees cash paid for interest cash paid for income taxes -(375+870-855+244-215) 5 |-(237+198-185 ) -(45+55-65) (44+114-95) 6 7 gain on sale of cash equivalents 4 10 net cash flow from operating activities =SUM(D4:D9) 11 12 2 cash flow from operating activities indirect method 13 14 44 15 net income adjustment for non cash effects depreciation 16 195 17 loss on sale of land 14 18 changes in operating assets and liabilities 19 decrease in accounts receivable 31 20 increase in increase -15 21 decrease in accounts payable -29 22 decrease in salaries payable -13 23 increase in interest payable decrease in income tax payable 10 24 -19 25 26 net cash flow from operating activities -SUM(D15:D25) 27 28 t

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