Suppose your company sells goods for $300, of which $200 is received in cash and $100 is on account. The goods cost your company $125 and were paid for in a previous period. Your company also recorded salaries and wages of $70, of which only $30 has been paid in cash.

Journal Entry:

2)

Calculate the amount that should be reported as net cash flow from operating activities.

3) Calculate the amount that should be reported as net income.

4) Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).

transaction list 1. Record the sales revenue of $200 for cash and $100 on account and record the cost of goods sold of $125 using one journal entry 2. Record the salaries and wages expense of $70. journal entry has been entered