Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is an income statement for the Foress Corporation for the year ended December 31, 2020, and a schedule listing the company's current assets and

image text in transcribed
image text in transcribed
Following is an income statement for the Foress 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. Foress Corporation Income Statement For the Year Ended December 31, 2020 Sales $87,300 (49761) 37,539 $9,603 2,619 (12,222) Cost of goods sold Gross margin Operating expenses: Selling and general expenses Depreciation expense Operating income Gain on sale of land held as investment Income before income tax Income tax expense Net income 25,317 5.233 30,550 (6,110) $24.440 2019 2020 Cash $13,000 $4,000 4,400 9,730 Accounts receivable Inventory 6,760 11,160 Prepaid selling/general expenses 3,600 900 3,490 6,173 Accounts payable Accrued liabilities 1,500 2,732 Prepare a schedule documenting the Forens Corporations net cash flow from operating activities for the year ended December 31.2020 using the indirect method. (Enter amounts that dechowether with antive sin preceding the number -15,000 or parentheses (15,000 Foress Corporation Partial Statement of Cash Flows For the Year Ended December 31, 2020 Operating activities-Indirect method Net income Adjustments of net income to cash basis Depreciation pense Gain on sale of land Decrease in accounts payable Decrease in Inventory Increase in prepaid sellingeneral opens Decrease in accounts payable Decrease in scored abilities Net cash provided by operating activities e Textbook and Media Prepare a schedule documenting the Foress Corporation's net cash flow racerating activities for the year ended December 31, 2020, using the direct method. Assume that selling and generales are related to both prepaid expenses and accrued liabilities (Enter amounts that decrease cash flow either with a negative preceding the numbers 15.000 or parentheses (15.0001) Foress Corporation Partial Statement of Cash Flows For the Year Ended December 11.2020 Operating activities-direct method Cash received from customers Canpaid to soples of intentory Chod for windeneral expemes Cashod for Notch pravided by operating activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions