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Following is an Income statement for the Cinrich Corporation for the year ended December 31, 2020, and a schedule listing the company's current assets and
Following is an Income statement for the Cinrich Corporation for the year ended December 31, 2020, and a schedule listing the company's current assets and current liabilities at the end of 2019 and 2020 Cinrich Corporation Income Statement For the Year Ended December 31, 2020 Sales $86,600 Cost of goods sold 149,362 Gross margin 37.238 Operating expenses: Selingland geheral expenses $9.526 Depreciation experise 2.598 (12.124) Operating income 25,114 Gain on sale fland held as investment 6,196 Income before income tax 31,310 Income tax expense (6.262) Net income $25.048 Cash Accounts receivable Inventory Prepaid selling/general expenses Accounts payable Accrued liabilities 2019 $12,500 4,870 7.470 3.900 2020 $4,250 10,380 11,670 1,300 6,163 2,825 3,220 1,500 Prepare a schedule documenting the Cinrich Corporation's net cash flow from operating activities for the year ended December 31, 2020, using the direct method. Assume that selling and general expenses are related to both prepaid expenses and accrued liabilities (Enter amounts that decrease cash flow elther with a negative sign preceding the number, eg. -15,000 or parenthesse.g. (15,0001) Cinrich Corporation Partial Statement of Cash Flows Operating activities-direct method
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