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Presented below is the income statement of Lisa, Inc.: Sales revenue Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes
Presented below is the income statement of Lisa, Inc.: Sales revenue Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes Net income $385,000 226,000 $159,000 93,000 66,000 22,500 $ 43,500 In addition, the following information related to net changes in working capital is presented: Credit Debit $12,000 24,400 $19,200 Cash Accounts receivable Inventories Salaries payable (operating expenses) Accounts payable Income taxes payable 7,900 13,400 3,500 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,900. 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).) Lisa, 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. Lisa, Inc. Statement of Cash Flows (Partial) Direct Method Click if you would like to Show Work for this question: Open Show Work Activate Windows
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