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Following is an income statement for the Kennel 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 Kennel 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. Kennel Corporation Income Statement For the Year Ended December 31, 2020 Sales $74,600 Cost of goods sold (42,522) Gross margin 32.078 Operating expenses Selling and general expenses $8.206 Depreciation expense 2.238 (10.444) Operating income 21.634 Gain on sale of land held as investment 5.151 Income before income tax 26,785 Income tax expense (5,357) Net Income $21,428 2019 2020 Cash $12,000 $4.210 4,000 9.640 7.260 11.260 Accounts receivable Inventory Prepaid selling/general expenses Accounts payable 3.600 900 2,510 5.074 Accrued liabilities 1.400 2.611 Prepare a schedule documenting the Kennel Corporation's net cash flow from operating activities for the year ended December 31, 2020, using the indirect method. (Enter amounts that decrease cash flow either with a negative sign preceding the number, eg. -15,000 or parenthesis es. (15,000.) Kennel Corporation Partial Statement of Cash Flows Operating activities-indirect method Increase in Inventory Increase in accounts payable Loss on sale of land Cash paid for taxes Increase in accounts receivable Net cash provided by operating activities Decrease in Inventory Net cash used in operating activities Cash paid for selling and general expenses Increase in prepaid selling/general expenses Decrease in accounts payable Adjustments of net income to cash basis Cash paid to suppliers of inventory Depreciation expense Gain on sale of land Decrease in accounts receivable Increase in accrued liabilities Decrease in accrued liabilities Decrease in prepaid selling/general expenses Net Income Cash received from customers Taytheon Media
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