Question
Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations. Cash Flows from Operating Activities (Indirect method) Net
Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations.
Cash Flows from Operating Activities (Indirect method) Net income $ 38,000 Adjustments for noncash effects: Depreciation expense 10,000 Changes in current assets and current liabilities: Increase in accounts receivable (11,000) Increase in accounts payable 8,000 Increase in income tax payable 6,000 Net cash flows from operating activities $ 51,000 Cash Flows from Operating Activities (Direct method) Cash received from customers $ 112,000 Cash paid for operating expenses (26,000) Cash paid for income taxes (35,000) Net cash flows from operating activities $ 51,000
Required:
Complete the following income statement for Electronic Transformations. Assume all accounts payable are to suppliers (operating expenses). (Input all amounts as positive values. Omit the "$" sign in your response.)
ELECTRONIC TRANSFORMATIONS Income Statement For the year ended December 31, 2012 Revenues $ Expenses: Operating expenses Depreciation expense 10,000 Income tax expense Total expenses Net income $ 38,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started