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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Determine cash flows from operating activities by the direct method.
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Accounting Question
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