Question

Saved Casn Tows Trom operating activities for porn the indirectang direct methods are presented tortlectronic Transformations. $ 34,900 Cash Flows from Operating Activities (Indirect method) Net income Adjustments to reconcile net income to net cash flovs from operating activities: Depreciation expense Increase in accounts receivable Increase in accounts payable Increase in income tax payable Net cash flows from operating activities 7,900 (11, 900) 6,900 4,900 $42,700 Cash Flows from Operating Activities (Direct method) Cash received from customers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities $ 77,500 (24,900) (9, 900) $42,700 Required: Complete the following income statement for Electronic Transformations. Assume all accounts payable are to suppliers. ELECTRONIC TRANSFORMATIONS Income Statement For the Year Ended December 31, 2021 Net sales Expenses Operating expenses Depreciation expense 7.900 Income tax expense Total expenses Net income $ 34.900 Prev 1 of 5 Next >
How do we compute net sales? Gelp please

Answer 1

Income tax expenses = Income tax paid + Increase in tax payables. Income tax expenses = $ 9,900 + $ 4,900 = $ 14,800 Operating expenses = Operating expenses paid + Increase in accounts payable Operating Expenses = $ 24,900 + $ 6,900 = $ 31,800 Amount Amount $89,400 Income Statement Particulars Net Sales Expenses : Operating expenses Depreciation expense Income tax expense Total expense Net Income $31,800 $ 7,900 $ 14,800 $ 54,500 $34,900 Net Sales = Total expense + Net Income