Davis Company provided the following partial comparative balance sheets and the income statement for 20X2. Davis Company Comparative Balance Sheets At December 31, 20X1 and 20X2 Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $585,000 Inventories 300,000 315,000 Current liabilities: Wages payable 700,000 520,000 Davis Company Income Statement For the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 260,000 Operating income $820,000 Other revenues and expenses Gain on sale of equipment $90,000 Interest expense 10,000 Total other revenues and expenses 80,000 Net income $900,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: Compute operating cash flows using the indirect method. fill in the blank 1 of 1$
Davis Company provided the following partial comparative balance sheets and the income statement for 20X2. Davis Company Comparative Balance Sheets At December 31, 20X1 and 20X2 Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $585,000 Inventories 300,000 315,000 Current liabilities: Wages payable 700,000 520,000 Davis Company Income Statement For the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 260,000 Operating income $820,000 Other revenues and expenses Gain on sale of equipment $90,000 Interest expense 10,000 Total other revenues and expenses 80,000 Net income $900,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: Compute operating cash flows using the indirect method. fill in the blank 1 of 1$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Davis Company provided the following partial comparative balance sheets and the income statement for 20X2.
Davis Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
Line Item Description 20X1 20X2
Current assets:
Accounts receivable $750,000 $585,000
Inventories 300,000 315,000
Current liabilities:
Wages payable 700,000 520,000
Davis Company
Income Statement
For the Year Ended December 31, 20X2
Line Item Description Amount Amount
Revenues $3,000,000
Cost of goods sold 1,920,000
Gross margin $1,080,000
Operating expenses
Depreciation 260,000
Operating income $820,000
Other revenues and expenses
Gain on sale of equipment $90,000
Interest expense 10,000
Total other revenues and expenses 80,000
Net income $900,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Required:
Compute operating cash flows using the indirect method.
fill in the blank 1 of 1$
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