John Lee Company Income Statement For the year ended Decembet 31, 2021 Revenues 5,400,000 Cost of Sales 3,000,000 Operating expense (excluding depreciation) 900,000 Depreciation expense 200,000 4,100,000 Net income 1,300,000 The following balances arereported on December 31: 2020 2021 Cash 450,000 1,170,000 Accounts receivable 1,010,000 1,300,000 Inventories 250,000 320,000 Accounts payable 720,000 700,000 Additional cash transactions for 2021 areas follows: 1. The company bought a delivery truck for P2,000,000 cash. 2. A long-term loan for P1,800,000 was obtained from the bank. 3. The proprietor, John Lee, withdrew P200,000. Required: Preparea statement of cash flows using indirect method for operating activities
John Lee Company Income Statement For the year ended Decembet 31, 2021 Revenues 5,400,000 Cost of Sales 3,000,000 Operating expense (excluding depreciation) 900,000 Depreciation expense 200,000 4,100,000 Net income 1,300,000 The following balances arereported on December 31: 2020 2021 Cash 450,000 1,170,000 Accounts receivable 1,010,000 1,300,000 Inventories 250,000 320,000 Accounts payable 720,000 700,000 Additional cash transactions for 2021 areas follows: 1. The company bought a delivery truck for P2,000,000 cash. 2. A long-term loan for P1,800,000 was obtained from the bank. 3. The proprietor, John Lee, withdrew P200,000. Required: Preparea statement of cash flows using indirect method for operating activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Required: Prepare a statement of
Transcribed Image Text:John Lee Company
Income Statement
For the year ended Decembet 31, 2021
Revenues
5,400,000
Cost of Sales
3,000,000
Operating expense (excluding depreciation)
900,000
Depreciation expense
200,000
4,100,000
Net income
1,300,000
The following balances are reported on December 31:
2020
2021
Cash
450,000
1,170,000
Accounts receivable
1,010,000
1,300,000
Inventories
250,000
320,000
Accounts payable
720,000
700,000
Additional cash transactions for 2021 areas follows:
1. The company bought a delivery truck for P2,000,000 cash.
2. A long-term loan for P1,800,000 was obtained from the bank.
3. The proprietor, John Lee, withdrew P200,000.
Required: Preparea statement of cashflows using indirect method for
operating activities
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education