Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following Balance Sheet and Income Statement to calculate your Cash Flow from Operations using the Indirect Method. You MUST show your steps in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Use the following Balance Sheet and Income Statement to calculate your Cash Flow from Operations using the Indirect Method. You MUST show your steps in transforming Net Income into Cash Flow from Operations. Your first step should be showing Net Income and it should end with Cash Flow from Operations. Balance Sheet 12/31/2019 12/31/2018 Current Assets Cash Accounts Receivable Prepaid Rent Inventory Total Current Assets $49,730 $37,070 $15,720 $22,920 $15,690 $12,350 $3,330 $4,100 $84.470 $76,440 $98,740 $95,950 ($62,850) ($58,570) $35,890 $37,380 $120,360 $113,820 PPE, gross Accumulated Depreciation PPE, net Total Assets Current Liabilities Accounts Payable Wages Payable Short-term Notes Payable Interest Payable $3,420 $4,630 $5,920 $5520 $10,390 $10,260 $340 $550 $20,070 $20,960 $19,080 $11,800 $39,150 $32,760 Total Current Liabilities Long-term Notes Payable Total Liabilities Stockholders' Equity Common Stock $48,030 $45,170 $33.180 $35,890 Retained Earnings Total Stockholders' Equity $81.210 $81,060 Total Liabilities and Stockholders' Equity $120,360 $113,820 Income Statement 12/31/2019 12/31/2018 Sales $62,310 $56,010 Cost of goods sold ($35.940) ($32.190) Gross Profit $26.370 $23.820 Wages expense ($4.560) ($3.940) Rent Expense ($4.950) 1$4450) Depreciation expense ($2.100) ($1.900) Operating Income $14,760 $13530 Gain from sale of PPE $900 $750 Interest expense ($282) 1$378) Income Before Income Tax $15.378 $13.902 income tax expense ($4.613) Net income $10 765 9731 Sales $62,310 $56.010 Cost of goods sold ($35,940) ($32,190) Gross Profit $26,370 $23,820 Wages expense ($4,560) ($3,940) Rent Expense ($4,950) ($4.450) Depreciation expense ($2,100) ($1,900) Operating Income $14,760 $13,530 Gain from sale of PPE $900 $750 Interest expense ($282) ($378) Income Before Income Tax $15,378 $13,902 Income tax expense ($4,613) ($4,171) Net income $10,765 $9,731

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

The Role Of Project Auditing In The Improvement Of Systems

Authors: Aïssata Maiga, Oumar Bah

1st Edition

6205076616, 978-6205076613

More Books

Students also viewed these Accounting questions