Use the following income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.
BEKHAM COMPANY Income Statement For Year Ended December 31, 2011 | ||
Sales |
| $1,818,000 |
Cost of goods sold |
| 891,000 |
Gross profit |
| 927,000 |
Operating expenses |
|
|
Salaries expense | $248,535 |
|
Depreciation expense | 43,200 |
|
Rent expense | 48,600 |
|
Amortization expenses—Patents | 5,400 |
|
Utilities expense | 19,125 | 364,860 |
|
| 562,140 |
Gain on sale of equipment |
| 7,200 |
Net income |
| $ 569,340 |
Changes in current asset and current liability accounts for the year that relate to operations follow.
Accounts receivable | . . $40,500 increase | Accounts payable | . . $13,500 decrease |
Merchandise inventory | . . 27,000 increase | Salaries payable | . . 4,500 decrease |
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.