Monty Company's reported 2023 net income of $161,320 was based on sales of $639,000, cost of goods sold of $195,000, salaries and wages of $153,000, depreciation expense of $53,000, and income tax expense of $76,680. During 2023, accounts receivable increased by $14,800 and accounts payable increased by $10,500. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MontyCompany Statement of Cash Flows (Partial) $ $ $
Monty Company's reported 2023 net income of $161,320 was based on sales of $639,000, cost of goods sold of $195,000, salaries and wages of $153,000, depreciation expense of $53,000, and income tax expense of $76,680. During 2023, accounts receivable increased by $14,800 and accounts payable increased by $10,500. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MontyCompany Statement of Cash Flows (Partial) $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Monty Company's reported 2023 net income of $161,320 was based on sales of $639,000, cost of goods sold of $195,000, salaries
and wages of $153,000, depreciation expense of $53,000, and income tax expense of $76,680. During 2023, accounts receivable
increased by $14,800 and accounts payable increased by $10,500.
Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Show amounts that
decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
>
>
MontyCompany
Statement of Cash Flows (Partial)
$
Expert Solution
Step 1
Cash flows from operating activities shows the cash receipts and payments which are received or paid for the core activities of the business. This section of Statement of cash flows can be calculated by indirect method or direct method.
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