Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below.

Income Statement
Sales Revenue $ 51,600
Expenses:
Cost of Goods Sold 22,500
Depreciation Expense 2,300
Salaries and Wages Expense 9,300
Rent Expense 4,800
Insurance Expense 2,050
Interest Expense 1,950
Utilities Expense 1,550
Net Income $ 7,150

Selected Balance Sheet Accounts
Ending Balances Beginning Balances
Accounts Receivable $ 575 $ 610
Inventory 960 755
Accounts Payable 435 490
Prepaid Rent 31 23
Prepaid Insurance 28 34
Salaries and Wages Payable 94 57
Utilities Payable 26 18

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

image text in transcribed

DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Total Adjustments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting An Introduction To Financial Accounting

Authors: Alan Sangster, Lewis Gordon, Frank Wood

15th Edition

1292365439, 9781292365435

More Books

Students also viewed these Accounting questions