Hudson Ltd. is a private company reporting under ASPE. Its income statement and changes in current assets and current liabilities for the year are reported below:

Instructions

Prepare the operating activities section of the cash fl ow statement using the direct method.

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HUDSON LTD. Income Statement Year Ended December 31, 2021 Sales $758,400 Cost of goods sold 392,000 Gross profit Operating expenses Depreciation expense Gain on sale of equipment 366,400 248,000 40,000 (8,000) 280,000 Profit before income tax 86,400 Income tax expense 24,000 Profit $ 62,400 Changes in current assets and current liabilities were as follows: Accounts receivable $ 28,800 decrease Inventory Prepaid expenses Accounts payable Dividends payable Income taxes payable 15,200 increase 1,600 increase 9,600 decrease 4,000 decrease 3,200 decrease