Accrual Basis Income Statement for the Year Ended December 31, 2012. Net sales $900,000 Expenses Cost of goods sold 550,000 Selling and administrative expense 133,000 Total expenses 683,000 Income before income taxes 217,000 Income taxes 65,400 Net income $151,600 Other data: a. Cost of goods sold includes depreciation expense of $20.000. b. Selling and administrative expense includes goodwill amortization of 10,000. c. Decrease in deferred income taxes (a liability account), $5,000. d. Increase in accounts receivable, $20,000. e. Increase in accounts payable, $10.000. f. Increase in inventories, $30,000. g. Decrease in income taxes payable, $20.000. Required: 2. Prepare the cash flows from operating activities using the indirect approach.
Accrual Basis Income Statement for the Year Ended December 31, 2012.
Net sales $900,000
Expenses
Cost of goods sold 550,000
Selling and administrative expense 133,000
Total expenses 683,000
Income before income taxes 217,000
Income taxes 65,400
Net income $151,600
Other data:
a. Cost of goods sold includes
b. Selling and administrative expense includes
c. Decrease in
d. Increase in
e. Increase in accounts payable, $10.000.
f. Increase in inventories, $30,000.
g. Decrease in income taxes payable, $20.000.
Required:
2. Prepare the
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