he chief accountant for Julius Company provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2024 statement of cash flows. 2024 Income Statement ($ in thousands)     Sales revenue   $ 5,000 Depreciation expense $ 280   Selling & administrative expense 3,720 4,000 Income before taxes   1,000 Income tax expense   300 Net income   $ 700 Balance Sheet (all $ in thousands) 12/31/2024 12/31/2023 Cash $ 800 $ 750 Accounts receivable 450 365 Property, plant & equipment 1,900 1,450 Less: Accumulated depreciation (800) (520)   $ 2,350 $ 2,045 Accrued liabilities for selling & administration expense $ 300 $ 325 Income taxes payable 180 130 Common stock 700 700 Retained earnings 1,170 890   $ 2,350 $ 2,045 Required: Determine the cash flow from operating activities for Julius Company, using the direct method. Note: Enter your answers in thousands of dollars.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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he chief accountant for Julius Company provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2024 statement of cash flows.

2024 Income Statement ($ in thousands)    
Sales revenue   $ 5,000
Depreciation expense $ 280  
Selling & administrative expense 3,720 4,000
Income before taxes   1,000
Income tax expense   300
Net income   $ 700
Balance Sheet (all $ in thousands) 12/31/2024 12/31/2023
Cash $ 800 $ 750
Accounts receivable 450 365
Property, plant & equipment 1,900 1,450
Less: Accumulated depreciation (800) (520)
  $ 2,350 $ 2,045
Accrued liabilities for selling & administration expense $ 300 $ 325
Income taxes payable 180 130
Common stock 700 700
Retained earnings 1,170 890
  $ 2,350 $ 2,045

Required:

Determine the cash flow from operating activities for Julius Company, using the direct method.

Note: Enter your answers in thousands of dollars.

 
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