Gainesville Corporation's income statement revealed sales of ($700),000; gross profit of ($300),000; selling and administrative costs of

Question:

Gainesville Corporation's income statement revealed sales of $$700$,000; gross profit of $$300$,000; selling and administrative costs of $$140$,000; and income taxes of $$45$,000. The selling and administrative expenses included $$10$,000 for depreciation. The company's operating activities generated positive cash flow of $$129$,000. Use the "direct" approach to demonstrate how this amount was calculated. The following additional information is available:

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