Question
Presented below is the income statement of Kolby, Inc.: Sales revenue $380,000 Cost of goods sold 225,000 Gross profit $155,000 Operating expenses 95,000 Income before
Presented below is the income statement of Kolby, Inc.:
Sales revenue $380,000
Cost of goods sold 225,000
Gross profit $155,000
Operating expenses 95,000
Income before income taxes 60,000
Income taxes 24,000
Net income $ 36,000
In addition, the following information on change in working capital is presented:
debit (increase) Credit (decrease)
Cash $12,000
Accounts receivable 25,000
Inventories $19,400
Salaries payable (operating expenses) 8,000
Accounts payable 14,000
Income taxes payable 3,000
The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600.
Instructions
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method.
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