Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,060,000 570,000 51,000 41,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Selected Balance Sheet Data December 31 Year 2 $103,000 45, 100 76,000 3,100 46,000 5,100 $1,825,000 1,722,000 $ 103,000 Year 1 $85, 500 49,500 55,500 5, 200 37,500 10,500 Increase (1) or Decrease (D) $17,500 (1) 4,400 (D) 20,500 (1) 2,100 (D) 8,500 (1) 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for the con and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 20
Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,060,000 570,000 51,000 41,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Selected Balance Sheet Data December 31 Year 2 $103,000 45, 100 76,000 3,100 46,000 5,100 $1,825,000 1,722,000 $ 103,000 Year 1 $85, 500 49,500 55,500 5, 200 37,500 10,500 Increase (1) or Decrease (D) $17,500 (1) 4,400 (D) 20,500 (1) 2,100 (D) 8,500 (1) 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for the con and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Portions of the financial statements for a company are provided below.
Income Statement
For the year ended December 31, Year 2
Net sales
Expenses:
Cost of goods sold.
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
Cash
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
$1,060,000
570,000
51,000
41,000
Selected Balance Sheet Data
December 31
Year 2
$103,000
45, 100
76,000
3,100
46,000
5,100
Cash flows from operating activities:
Net income
Depreciation expense
$1,825,000
1,722,000
$ 103,000
Net cash flows from operating activities
Year 1
$85,500
49,500
55,500
5, 200
37,500
10,500
Increase (I)
or
Decrease (D)
$17,500 (1)
4,400 (D)
20,500 (1)
Required:
Prepare the operating activities section of the statement of cash flows for the con
and any decrease in cash as negative amounts.)
Statement of Cash Flows (partial)
For the Year Ended December 31, Year 20
2,100 (D)
8,500 (I)
5,400
(D)
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F067ce7d2-f100-4f1a-b495-b300a7f314eb%2F6e84d101-d500-441d-b3b2-9913a966226d%2F5vy1tqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Portions of the financial statements for a company are provided below.
Income Statement
For the year ended December 31, Year 2
Net sales
Expenses:
Cost of goods sold.
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
Cash
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
$1,060,000
570,000
51,000
41,000
Selected Balance Sheet Data
December 31
Year 2
$103,000
45, 100
76,000
3,100
46,000
5,100
Cash flows from operating activities:
Net income
Depreciation expense
$1,825,000
1,722,000
$ 103,000
Net cash flows from operating activities
Year 1
$85,500
49,500
55,500
5, 200
37,500
10,500
Increase (I)
or
Decrease (D)
$17,500 (1)
4,400 (D)
20,500 (1)
Required:
Prepare the operating activities section of the statement of cash flows for the con
and any decrease in cash as negative amounts.)
Statement of Cash Flows (partial)
For the Year Ended December 31, Year 20
2,100 (D)
8,500 (I)
5,400
(D)
$
0
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education