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A. A partial balance sheet for orange company is presented below. Orange Company Income statement A For the year Ended December 31, 2019 Sales Cost
A. A partial balance sheet for orange company is presented below. Orange Company Income statement A For the year Ended December 31, 2019 Sales Cost of goods sold Gross Profit Operating expenses: Salaries $10,000 Depreciation expense 4,000 Miscellaneous 1,000 Net Income $100,000 (55,000) $45,000 (15,000) $30,000 Orange Company Balance Sheet As at 31st December 2019 2019 2018 Cash $5,000 $7,000 Account receivable 1,500 1,200 Inventories 2,000 2,500 Prepaid expenses 500 250 Furniture 4,500 2,500 Accounts Payable 7,000 10,000 Salaries Payable 500 900 Bank Loan Short term 2,000 1,500 Required:Prepare the operating activities section of the statement of cash flows using indirect method. (10 Marks)
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