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all one problem Required information (The following information applies to the questions displayed below) Green Brands, Inc. (GB) presents its statement of cash flows using
all one problem
Required information (The following information applies to the questions displayed below) Green Brands, Inc. (GB) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salarios payable Unearned service revenue Year $ 23,100 56,600 16,900 24.900 4,750 900 Year 1 $20,700 48.900 24,300 12.900 4,000 3.000 The Year 2 income statement is shown next: Income statement Sales Coot of goods sold Gross margin Service revenge Insurance expense Salaries expense Depreciation expense Operating income Cain on sale of equipment Not income $ 616,000 (379.000 237,000 5,700 (39.000 (151.000) 200) 47, 400 2,400 $50,800 Net Income $50,000 b. Prepare the operating activities section of the statement of cash flows using the Indirect method for Year 2. (Amounts to be deducted should be indicated with a minus sign.) GREEN BRANDS, INC Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Yoar 2 Cash flows from operating activities: Add: inces Deduct Add: noncash expenses Nel cash flow from operating activities Step by Step Solution
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