Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Net income The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The
Net income The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The amounts for income statement elements are missing. Income Statement Cash Flows from Operating Activities Indirect Method $ ? Direct Method Adjustments: Sales $? Decrease in accounts receivable Cost of goods sold ? Increase in inventory 12 Cash received from customers (24) $ 612 Decrease in accounts payable (36) Cash paid to suppliers (420) Salaries expense ? Increase in salaries payable 12 Cash paid to employees (66) Depreciation expense ? Depreciation expense 18 (Not reported-no cash effect) Insurance expense ? Decrease in prepaid insurance 18 Cash paid for insurance (24) Loss on sale of land ? Loss on sale of land 12 (Not reported-no cash effect) Income tax expense ? Increase in income tax payable 12 Cash paid for income taxes (42) Net income $? Net cash flows from operating activities $ 60 Net cash flows from operating activities $ 60 Required: Deduce the missing amounts and prepare the income statement. Income Statement
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