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Portions of the financial statements for Clear Transmissions Company are provided below. CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($
Portions of the financial statements for Clear Transmissions Company are provided below.
CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) | |||||||
Sales | $ | 1,320 | |||||
Cost of goods sold | 500 | ||||||
Gross margin | 820 | ||||||
Salaries expense | $ | 220 | |||||
Depreciation expense | 180 | ||||||
Amortization expense | 10 | ||||||
Interest expense | 40 | ||||||
Loss on sale of cash equivalents | 6 | 456 | |||||
Income before taxes | 364 | ||||||
Income tax expense | 182 | ||||||
Net Income | $ | 182 | |||||
CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) | |||||||||
Year | |||||||||
2021 | 2020 | Change | |||||||
Cash | $ | 102 | $ | 100 | $ | 2 | |||
Accounts receivable | 220 | 232 | (12 | ) | |||||
Inventory | 440 | 450 | (10 | ) | |||||
Accounts payable | 140 | 134 | 6 | ||||||
Salaries payable | 80 | 86 | (6 | ) | |||||
Interest payable | 25 | 20 | 5 | ||||||
Income tax payable | 15 | 10 | 5 | ||||||
Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method.
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