Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $515,000 Cost of goods sold 331,600 Gross profit 183,400 Operating expenses Depreciation expense $

image text in transcribed
image text in transcribed
MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $515,000 Cost of goods sold 331,600 Gross profit 183,400 Operating expenses Depreciation expense $ 36,000 Other expenses 121,500 157,500 Income before taxes 25,900 Income taxes expense 7,700 Net income $ 18, 200 Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be dedu should be indicated by a minus sign.) ducted $ 23,800 $ Cash flows from operating activities: Net income Adjustments to reconcile net income to operating cash flow Depreciation Accounts receivable decrease Inventory increase Accounts payable increase Income taxes payable decrease Income taxes payable decrease Net cash provided by operating activities 44,000 11,000 (91,000) 8,700 (550) 54,050 26,200 50,000 $ Saved QS 12-6 Indirect: Computing cash from operations LO P2 MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 Current assets Cash $84,650 $26,800 Accounts receivable 25,000 32,000 Inventory 60,000 54,100 Current liabilities Accounts payable 30,400 25,700 Income taxes payable 2,050 2,200 MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $515,000 Cost of goods sold 331,600 Gross profit 183,400 Operating expenses Depreciation expense $ 36,000 other expenses 121,500 157.500 Income before taxes 25,900 Income taxes expenso 7.700 Net Income $ 18, 200 Use the information above to calculate cash flows from operating activities using the indirect method. (Am should be indicated by a minus sign.) Cash flows from operating activities income Austments to reconcile net income to operating cash flow $ 23.800 F2 30 F3 ORD DOD F4 OW

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

Accounting Information Systems And Internal Control

Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman

2nd Edition

0470753951, 9780470753958

More Books

Students also viewed these Accounting questions

Question

What kinds of communication help sustain long-distance romances?

Answered: 1 week ago