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Piura Merchandising Corporation Income Statement At December 31, 20X1 Sales $ 1,500,000 Cost of goods sold $ 400,000 Beginning inventory Purchases 800,000 Ending inventory (200,000) (1,000,000) (100,000) (20,000) (80,000) (40,000) $ 260,000 (104,000) $ 156,000 Depreciation expense Amortization of patent Wages cxpcnse Insurance expense Income before taxces Income taxcs (all current) Net income

Piura Merchandising Corporation Income Statement At December 31, 20X1 Sales $ 1,500,000 Cost of goods sold $ 400,000 Beginning inventory Purchases 800,000 Ending inventory (200,000) (1,000,000) (100,000) (20,000) (80,000) (40,000) $ 260,000 (104,000) $ 156,000 Depreciation expense Amortization of patent Wages cxpcnse Insurance expense Income before taxces Income taxcs (all current) Net income

FINANCIAL ACCOUNTING
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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The income statement for Piura Merchandising Corporation is as follows:

Other information is as follows:

a. Accounts payable decreased by $20,000 during the year.

b. Accounts receivable increased by $20,000.

c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.

d. Prepaid insurance increased by $24,000 during year.

Required:

Prepare a schedule that provides the operating cash flows for the year using the indirect method.

Piura Merchandising Corporation Income Statement At December 31, 20X1 Sales $ 1,500,000 Cost of goods sold $ 400,000 Beginning inventory Purchases 800,000 Ending inventory (200,000) (1,000,000) (100,000) (20,000) (80,000) (40,000) $ 260,000 (104,000) $ 156,000 Depreciation expense Amortization of patent Wages cxpcnse Insurance expense Income before taxces Income taxcs (all current) Net income
Transcribed Image Text:Piura Merchandising Corporation Income Statement At December 31, 20X1 Sales $ 1,500,000 Cost of goods sold $ 400,000 Beginning inventory Purchases 800,000 Ending inventory (200,000) (1,000,000) (100,000) (20,000) (80,000) (40,000) $ 260,000 (104,000) $ 156,000 Depreciation expense Amortization of patent Wages cxpcnse Insurance expense Income before taxces Income taxcs (all current) Net income
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