Prepare cash from operating activities section of statement of cash flows using the direct method. (LO 4)

Use the income statement for Clark Corporation for past year and the information from the comparative balance sheets shown for the beginning and the end of the year to prepare the cash from operating activities section of the statement of cash flows using the direct method.

Transcribed Image Text:

Sales $100,000 Cost of goods sold 35,000 Gross margin 65,000 Operating expenses Wages $2,500 Rent 1,200 Utilities Insurance Net income Account Accounts receivable Inventory Prepaid insurance Beginning of the Year $ 10,000 21,000 575 980 320 5,000 $ 60,000 Accounts payable Wages payable Utilities payable 9,000 850 150 End of the Year $12,000 18,500 400 10,400 600 -0-