Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Portions of the financial statements for Clear Transmissions Company are provided below. CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2018 ($

Portions of the financial statements for Clear Transmissions Company are provided below.

CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Sales $ 1,620
Cost of goods sold 648
Gross margin 972
Salaries expense $ 280
Depreciation expense 205
Patent amortization expense 20
Interest expense 60
Loss on sale of cash equivalents 11 576
Income before taxes 396
Income tax expense 198
Net Income $ 198

CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
Year
2018 2017 Change
Cash $ 117 $ 110 $ 7
Accounts receivable 230 247 (17 )
Inventory 445 460 (15 )
Accounts payable 165 154 11
Salaries payable 85 96 (11 )
Interest payable 40 30 10
Income taxes payable 30 20 10

Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

Cash Flows from Operating Activities:
Cash received from customers $1,637
Cash decrease from sale of cash equivalents
Cash paid to suppliers
Cash paid to employees
Cash paid for interest
Cash paid for income taxes
Net cash flows from operating activities $1,637

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

Students also viewed these Accounting questions