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Intermediate Accounting II. INSTRUCTIONS a) Prepare the operating section of the cash flows statement under the INDIRECT method. b) Prepare the operating section of the

Intermediate Accounting II.
INSTRUCTIONS
a) Prepare the operating section of the cash flows statement under the INDIRECT method.
b) Prepare the operating section of the cash flows statement under the DIRECT method.
c) Calculate cash payments for operating expenses.
d) Calculate depreciation expense.
e) Calculate cash payments to suppliers.
f) Calculate cash receipts from customers.
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Q1: Gold Corp. has the following data: 2020 82,000 63,000 2021 85,000 50,000 6,000 30,000 20,000 15,000 4,000 (40,000) 50,000 12,000 20,000 3,000 3,000 Sales COGS Operating Exp. Payroll Expense Interest Expense Loss on sale of investment Gain on sale of Truck Net loss 2021 320,000 200,000 60,000 80,000 2,000 3,000 2,000 (23,000) Accounts Receivable Inventory Prepaid Rent Truck A/D - Truck Accounts Payable Salaries Payable Retained Earnings Additional information for 2019 1 Investments were purchased 2 A/P pertains entirely to inventory. 3 Operating expenses includes depreciation 4 Treasury stock was repurchased for cash. 5 Amortization of discount 6 Sale of truck costing $20,000 at again for cash 7 Bonds were issued for cash at a discount. 8 Investments were sold at a loss 9 Cash dividends were declared and paid. Cash flows INSTRUCTIONS 30,000 a) Prepare the operating section of the cash flows statement under the indirect method. ? b) Prepare the operating section of the cash flows statement under the 20,000 direct method 500 c) Calculate cash payments for operating expenses. 15,000 d) Calculate depreciation expense. 198,000 e) Calculate cash payments to suppliers. ? 1) Calculate cash receipts from customers

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