AaBbCcDc AaBbCcDdE AaBbCeDdi AaBbCeDdE Nermal 3-3 The Income Statement Construet a simple income statement that calculates net income given the following information: Cost of goods sold: Income taxes: General and administrative expenses: Depreciation expense: Revenue: 200 100 50 150 1,000 3-4 Statement of Cash Flows Part 1 What is the total, cumulative effect on net cash flow of the following activities? Dividend payment to investors of $1,000. Decrease in accounts payable of $5,000 Decrease in value of a machine from $4,000 to $3,000, Increase long-term issued bonds of $8,000 3-4 Statement of Cash Flows Part 2 A company's before tax operating income is si,000, with a 35% tax rate, what is the company's after-tax operating income? 3-7 Free Cash Flow Part 1 four components used to cakculate free cash flow can increase or decrease the total amount of calculated free cash fow 3.-7 Free Cash Flow Part 2 What is the effect on cash flow and accounts reccivable if a company lowered its credit terms trom 60 days to 30 days 3-7 Free Cash Flow Part 3