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HAWKEYE COMPANY Statement of Profit or Loss For the Year Ended December 31,2023 Sales Cost of goods sold Gross margin Operating expenses: Salarie Depreciation Loss
HAWKEYE COMPANY Statement of Profit or Loss For the Year Ended December 31,2023 Sales Cost of goods sold Gross margin Operating expenses: Salarie Depreciation Loss on sale of land Total operating expenses Operating profit Other income (expense): Gain on sale of cash equivalents. Interest expense Profit before tax Income tax expense Net proft 900 (350) 550 $232 190 (434) 116 (40) 80 (40) $ 40 HAWKEYE COMPANY Selected Accounts from Comparative Statements of Financial Position December 31, 2023 and 2022 Year 2023 $212 395 860 210 180 2022 $200 421 850 234 188 50 104 Change $ 12 Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income taxes payable (26) 10 (24) 5 90 (14) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method, assuming Hawkeye classifies interest paid as a financing activity 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method, assuming Hawkeye classifies interest paid as a financing activity
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