Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, I am sending this question in two parts, I am having problems creating a state of cash flows for the year. Hello, This is
Hello,
I am sending this question in two parts, I am having problems creating a state of cash flows for the year.
Hello,
This is the second part of my original question.
The company reported net income this year as follows:
Sales | $ | 2,000,000 | ||||
Cost of goods sold | 1,300,000 | |||||
Gross margin | 700,000 | |||||
Selling and administrative expenses | 490,000 | |||||
Net operating income | 210,000 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 60,000 | ||||
Loss on sale of equipment | (20,000 | ) | 40,000 | |||
Income before taxes | 250,000 | |||||
Income taxes | 80,000 | |||||
Net income | $ | 170,000 |
Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started