Question #34 (20 marks) Consider the following financial statements about DANIEL Co. for the current year 20154 1/S for the year ended Dec. 31, 2015 Sales CGS Operating expenses Profit from operations (EBIT) Interest expense $16,000 10,000 4,000 2,000 2002 1,800 6002 $ 1,200 Tax expense NI Additional information: Operating expenses include $150 of depreciation expense and a $200 impairment loss on equipment. A/R increased by $3804 Inventory decreased by $1004 Prepaid expenses related to operating expense increased by $804 A/P decreased by $3604 Accrued liabilities related to operating expenses decreased by $1804 Interest payable decreased by $20- Unearned revenue received from customers decreased by $34 Income tax payable increased by $404 Required: Prepare CFO section of the cash flow statement under the (a) DIRECT (12 marks); (b) INDIRECT (8 marks) methods

Answer rating: 100% (QA)

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