Problem

Use the following income statement and information about changes in noncash current assets...

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

Step-by-Step Solution

Request Professional Solution

Request Solution!

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.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search