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Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $ 11,800 $ 12,400 $ 21,800 $ 22,800 Cost of Goods

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Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $ 11,800 $ 12,400 $ 21,800 $ 22,800 Cost of Goods Sold 6,720 9,500 12,720 13,910 Gross Profit 5,089 2,900 9,080 Depreciation Expense 8,090 1,200 1,200 1,900 Salaries and Wages Expense 1,980 1,700 1,200 5,800 5,800 Net Income $ 2,180 $ 500 $ 1,380 $ 390 Accounts Receivable $ 340 $ 480 $ 830 $ 640 Inventory 790 580 770 880 Accounts Payable 880 740 880 970 Salaries and Wages Payable 1,048 1,280 240 330 Required: Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Case A Case B Net Income ls 2,180 1,380 Adjustments to Reconcilo Net Income to Net Cash Provided by Operating Activities Depreciation Expense 1.200 1,900 > Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable OOOO 140 (210) (140) 240 X (190) 110 90 X 90 % Net Cash Provided by Oneratinn Activities els 3.410 $ 3.360

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