Question
Presented below is the income statement of Jennifer, Inc.: Sales revenue Cost of goods sold $379,500 230,000 Gross profit $149,500 Operating expenses 90,400 Income before
Presented below is the income statement of Jennifer, Inc.: Sales revenue Cost of goods sold $379,500 230,000 Gross profit $149,500 Operating expenses 90,400 Income before income taxes 59,100 Income taxes 23,200 Net income $ 35,900 In addition, the following information related to net changes in working capital is presented: Cash Debit $11,000 Credit Accounts receivable 25,900 Inventories $19,000 Salaries payable (operating expenses) 8,500 Accounts payable 13,200 Income taxes payable 3,200 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. Prepare a schedule computing the net cash flow from operating activities by using the indirect method that would be shown on a statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Jennifer, Inc. Statement of Cash Flows (Partial) (Indirect Method) Adjustments to reconcile net income to Prepare a schedule computing the net cash flow from operating activities by using the direct method that would be shown on a statement of cash flows. Jennifer, Inc. Statement of Cash Flows (Partial) Direct Method $ Click if you would like to Show Work for this question: Open Show Work
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