For the year ended December 31, 2021 Sales P 6,100,0 Cost of sales 3,700,00 Gross profit Gain on sale of equipment 2,400,0 100,0 2,500,0 Total revenues Operating expenses Salaries 820,000 Insurance 380,000 Depreciation 220,000 1,420,00 Income before interest and income tax 1,080,0 Interest expense Income before income tax expense 120,00 960,0 Income tax expense 288,00 Net income after tax 672,00 The following information is also available: 120,0 280,0 160,0 100,0 180,0 Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable 30,0 18,0
For the year ended December 31, 2021 Sales P 6,100,0 Cost of sales 3,700,00 Gross profit Gain on sale of equipment 2,400,0 100,0 2,500,0 Total revenues Operating expenses Salaries 820,000 Insurance 380,000 Depreciation 220,000 1,420,00 Income before interest and income tax 1,080,0 Interest expense Income before income tax expense 120,00 960,0 Income tax expense 288,00 Net income after tax 672,00 The following information is also available: 120,0 280,0 160,0 100,0 180,0 Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable 30,0 18,0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
OPERATING ACTIVITIES
HOW MUCH IS THE NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Transcribed Image Text:Statement of Cash Flows, Operating Activities. The profit or loss section of the statement
of comprehensive income of MANILA Company for the year ended December 31, 2021 is
reproduced below:
Manila Company
Income Statement
For the year ended December 31, 2021
Sales
6,100,000
Cost of sales
3,700,000)
Gross profit
Gain on sale of equipment
2,400,000
100,000
Total revenues
2,500,000
Operating expenses
Salaries
820,000
Insurance
380,000
Depreciation
220,000
1,420,000)
Income before interest and income tax
1,080,000
120,000)
960,000
Interest expense
Income before income tax expense
288,000)
672,000
Income tax expense
Net income after tax
P
The following information is also available:
Decrease in accounts receivable
120,000
Increase in inventory
Decrease in accounts payable
Increase in salaries payable
Increase in prepaid insurance
Decrease in interest payable
Increase in income tax payable
280,000
160,000
100,000
180,000
30,000
18,000
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