Question
Brice Corporation reported the following information: 2014 Income Statement Sales Revenue $8,200,000 Cost of goods Sold 6,400,000 Gross Profit 1,800,000 Operating expenses (includes $200,000 depreciation
Brice Corporation reported the following information:
2014 Income Statement
Sales Revenue $8,200,000
Cost of goods Sold 6,400,000
Gross Profit 1,800,000
Operating expenses (includes $200,000 depreciation expense) 1,250,000
Pretax Income 550,000
Income tax expense (30% rate) 165,000
Net Income $385,000
Balance Sheet
2014 2013
Accounts Receivable $800,000 $600,000
Inventory 520,000 480,000
Prepaid Expenses 110,000 120,000
Accounts Payable 340,000 310,000
Accrued Liabilities 80,000 90,000
Income taxes payable 25,000 40,000
Unearned Revenue 100,000 200,000
REQUIRED:
a. Prepare the operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the indirect method.
b. Preparethe operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the direct method
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