Munoz Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Munoz's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Income Statement Sales Cost of goods sold Gross margin Service revenue Year 2 $22,900 57,800 The Year 2 income statement is shown below: Insurance expense Salaries expense Depreciation expense Operating income 17,500 26,200 4,750 900 Year 1 $26,900 49,000 25,800 20,000 3,850 2,750 $ 620,000 (369,000) 251,000 5,600 (39,000) (143,000) (5,900) 68,700

Munoz Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Munoz's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Income Statement Sales Cost of goods sold Gross margin Service revenue Year 2 $22,900 57,800 The Year 2 income statement is shown below: Insurance expense Salaries expense Depreciation expense Operating income 17,500 26,200 4,750 900 Year 1 $26,900 49,000 25,800 20,000 3,850 2,750 $ 620,000 (369,000) 251,000 5,600 (39,000) (143,000) (5,900) 68,700

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Description: Munoz Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and correspondingbalances were drawn from Munoz's Year 2 and Year 1 year-end balance sheetsAccount TitleAccounts receivableMerchandise invento

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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