Problem 11-8A (Algo) Prepare an income statement using operating cash flow information-indirect anddirect methods (LO11-3, 11-7)Cash flows from operating activities for both the indirect and direct methods are presented for Reverse Logic. Allamounts are in thousands (000s).Cash Flows from Operating Activities (Indirect method)Net incomeAdjustments to reconcile net income to net cash flows from operatingactivities:Depreciation expenseIncrease in accounts receivableDecrease in inventoryIncrease in prepaid rentDecrease in accounts payableDecrease in income tax payableNet cash flows from operating activitiesCash Flows from Operating Activities (Direct method)Cash received from customersCash paid to suppliersCash paid for operating expensesCash paid for income taxesNet cash flows from operating activitiesREVERSE LOGICIncome StatementFor the Year Ended December 31, 2024Net salesExpenses:Cost of goods soldOperating expensesDepreciationexpenseIncome tax expenseTotal expensesNet incomeRequired:Complete the following income statement for Reverse Logic. Assume all accounts payable are to suppliers. (Enter youranswers in thousands (i.e., 10,000,000 should be entered as "10,000).)57$$16916957(33)45(3)(21)(7)$4,045(2,590)(1,156)(92)$207$207

1. Cash Flow Statement reflects the Cash Inflows and Outflows during a period of time. 2. Effects of…

nts are in thousands (000s). h Flows from Operating Activities (Indirect method) -t income justments to reconcile net income to net cash flows from tivities: preciation expense crease in accounts receivable crease in inventory crease in prepaid rent crease in accounts payable crease in income tax payable let cash flows from operating activities

nts are in thousands (000s). h Flows from Operating Activities (Indirect method) -t income justments to reconcile net income to net cash flows from tivities: preciation expense crease in accounts receivable crease in inventory crease in prepaid rent crease in accounts payable crease in income tax payable let cash flows from 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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