Refer to the information in Problem 17-5B. Prepare a statement of cash flows for 2014 using the direct method to report cash inflows and outflows from operating activities.

Other information:

a. All sales were credit sales.
b. All credits to accounts receivable in the period were receipts from customers.
c. Purchases of merchandise were on credit.
d. All debits to accounts payable in the period resulted from payments for merchandise.
e. The other expenses were paid in advance and were initially debited to PrepaidExpenses.

Transcribed Image Text:

Tartisan Resources Inc. Tartisan Resources Inc. Comparative Balance Sheet Information Income Statement December 31 For Year Ended December 31, 2014 2014 2013 Sales $1,061,340 Cash $133,770 S 70,119 Cost of goods sold. Gross profit. 573,300 488,040 Accounts receivable. Merchandise inventory. Prepaid expenses Equipment. 72,618 88,935 445,410 16,758 480,396 Operating expenses: Depreciation expense..... Other expenses. Total operating expenses . Loss on sale of equipment.. Income from operations. 18,816 211,680 91,140 S 35,868 272,685 384,993 106,575 Accumulated depreciation. Accounts payable. Short-term notes payable. Long-term notes payable Common shares. Retained earnings. 420,861 2,058 $ 65,121 9,261 115,101 120,981 16,905 11,025 110,250 80,850 441,000 124,950 Income taxes... 473,340 119,070 Net income. 55,860