The income statement for Dunn Products Inc. is presented below. Dunn Products Inc. Income Statement For the

Question:

The income statement for Dunn Products Inc. is presented below.
Dunn Products Inc.
Income Statement
For the year ended December 31, 2019

Sales Cost of goods sold Gross margin Other expenses: Salaries expense Administrative expense Depreciation expense Bad d

The following balance sheet changes occurred during the year:
€¢ Accounts receivable decreased by $85,150.
€¢ Inventory decreased by $138,620.
€¢ Prepaid expenses increased by $112,400.
€¢ Accounts payable decreased by $67,225.
€¢ Salaries payable increased by $18,300.
Required:
1. Prepare the net cash flows from operating activities using the indirect method.
2. What are the causes of the major differences between net income and net cash flow from operating activities?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...