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Dave Company reported the following condensed income statement for 2016: Sales $100,000 Cost of goods sold (58,000) Gross profit $42,000 Operating expenses: Depreciation expense $8,000
Dave Company reported the following condensed income statement for 2016: Sales $100,000 Cost of goods sold (58,000) Gross profit $42,000 Operating expenses: Depreciation expense $8,000 Salaries expense 12,000 (20,000) Income before income taxes $22,000 Income tax expense (6,600) Net income $15,400 During 2016, the following changes occurred in the company's current assets and current liabilities: Increase (Decrease) Cash $3,700 Accounts receivable (5,500) Inventories 8,900 Accounts payable (purchases) (4,600) Salaries payable 2,800 Required: Question Content Area 1. By visual inspection, prepare the net cash flow from the operating activities section of Dauve's 2016 statement of cash flows using the indirect method. Use a
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