Question 13, Question 13

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 $1,980 Cost of goods sold 792 Gross margin 1, 188 Salaries expense $352 Depreciation expense 235 Patent amortization expense 32 Interest expense 84 Loss on sale of cash equivalents 17 720 Income before taxes 468 Income tax expense 234 Net Income $ 234 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change Cash $126 $122 $ 4 Accounts receivable 253 265 (12 ) Inventory 461 472 (11) Accounts payable 183 178 5 Salaries payable 103 108 (5) Interest payable 45 42 3 Income taxes payable 48 32 16 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