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