Question
Operating activities: Direct and indirect methods The 20X5 income statement of Office Products Inc. follows: OFFICE PRODUCTS INC. Income Statement for the Year Ended December
Operating activities: Direct and indirect methods The 20X5 income statement of Office Products Inc. follows:
OFFICE PRODUCTS INC. Income Statement for the Year Ended December 31, 20X5 | ||
Net sales |
| $980,000 |
Cost of goods sold | ||
Beginning inventory | $235,000 |
|
Net purchases | 720,000 |
|
Goods available for sale | $955,000 |
|
Less: Ending inventory | 260,000 |
|
Cost of goods sold |
| 695,000 |
Gross profit |
| $285,000 |
Expenses | ||
Selling & administrative | $149,000 |
|
Depreciation | 54,000 | 203,000 |
|
| $ 82,000 |
Other revenue (expense) | ||
Interest expense | $ (18,000) |
|
Gain on sale of equipment | 26,000 | 8,000 |
Income before income taxes |
| $ 90,000 |
Income taxes |
| 27,000 |
Net income |
| $ 63,000 |
The following additional information was obtained from the general ledger and management personnel:
Accounts payable related to the purchases of merchandise decreased during 20X5 by $34,800. In contrast, accounts receivable increased by $24,850
Prepaid expenses and wages payable increased throughout 20X5 by $3550 and $6750, respectively.
This is the original problem. The balance in the income taxes payable account on January 1 was $4,900; the December 31 balance was $4,100. The teacher changed income taxes payable decreased from 800 to 1950.
The company financed a $78,000 equipment purchase by signing a note payable that is due in 20X8.
Answer must be in the following format:
Instructions
Prepare the operating activities section of the statement of cash flows by using the direct method.
Prepare the operating activities section of the statement of cash flows by using the indirect method.
Copy of ACC206 Guidance Report Week One Excel File Home Insert page Layout Formulas Data Review view Q lell me what you want to do D27 120000 YOUR ANSWERS COURSE START 62 DALE Direct Method Cash collected Leas cash paid for: Inventory Selling & administrative Interest expense 69 Income taxes Net cash provided by operating activities Indirect Method 73 Net income 14 Accounts payable decreased Accounts receivable increaaed Prepaid expenses increased wages payable increased Inventory Income taxes payable decreased Depreciation 81 Gain on sale of equipment Net cash provided by operating activities 83 84 original Account to Student Guidance Report Ready a ype here to search rhonda paul 0:24 AM 4/24/2017 Share
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