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rubymouse253Lv1
28 Sep 2019
The income statement of Vince Gill Company is shown below.
Vince Gill Company Income Statement For year ended December 31, 2014 Sales Revenue
$6,947,090 Cost of Goods Sold Beginning inventory $1,890,710 Purchases 4,323,810 Goods available for sale 6,214,520 Ending inventory 1,601,450 Cost of goods sold 4,613,070 Gross Profit 2,334,020 Operating expenses Selling expenses 446,970 Admin expenses 709,920 1,156,890 Net income 1,177,130
1. Accounts receivable decreased $316,040 during the year. 2. Prepaid expenses increased $175,400 during the year. 3. Accounts payable to suppliers of merchandise decreased $283,580during the year. 4. Accrued expenses payable decreased $115,830 during theyear. 5. Administrative expenses include depreciation expense of$54,760.
Prepare the operating activities section of the statement ofcash flows using the direct method.
The income statement of Vince Gill Company is shown below.
| Vince Gill Company | ||
| Income Statement | ||
| For year ended December 31, 2014 | ||
Sales Revenue | $6,947,090 | |
| Cost of Goods Sold | ||
| Beginning inventory | $1,890,710 | |
| Purchases | 4,323,810 | |
| Goods available for sale | 6,214,520 | |
| Ending inventory | 1,601,450 | |
| Cost of goods sold | 4,613,070 | |
| Gross Profit | 2,334,020 | |
| Operating expenses | ||
| Selling expenses | 446,970 | |
| Admin expenses | 709,920 | 1,156,890 |
| Net income | 1,177,130 | |
| 1. | Accounts receivable decreased $316,040 during the year. | |
| 2. | Prepaid expenses increased $175,400 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $283,580during the year. | |
| 4. | Accrued expenses payable decreased $115,830 during theyear. | |
| 5. | Administrative expenses include depreciation expense of$54,760. |
Prepare the operating activities section of the statement ofcash flows using the direct method.
Nelly StrackeLv2
28 Sep 2019
Related questions
Exercise 23-3
The income statement of Pharoah Company is shownbelow.
PHAROAH COMPANY | ||||
| Sales revenue | $7,430,000 | |||
| Cost of goods sold | ||||
| Beginning inventory | $2,090,000 | |||
| Purchases | 4,770,000 | |||
| Goods available for sale | 6,860,000 | |||
| Ending inventory | 1,440,000 | |||
| Cost of goods sold | 5,420,000 | |||
| Gross profit | 2,010,000 | |||
| Operating expenses | ||||
| Selling expenses | 440,000 | |||
| Administrative expenses | 690,000 | 1,130,000 | ||
| Net income | $880,000 | |||
Additional information:
| 1. | Accounts receivable decreased $350,000 during the year. | |
| 2. | Prepaid expenses increased $150,000 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $260,000during the year. | |
| 4. | Accrued expenses payable decreased $130,000 during theyear. | |
| 5. | Administrative expenses include depreciation expense of$60,000. |
Prepare the operating activities section of the statement of cashflows for the year ended December 31, 2017, for Pharoah Company,using the indirect method. (Show amounts that decreasecash flow with either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).)
