Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $405,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $235,000 70,000 17,000 27,000 Total expenses 349,000 $ 56,000 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 $ 7,000 14,000 10,000 6,000 9,000 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable 24,000 Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $405,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $235,000 70,000 17,000 27,000 Total expenses 349,000 $ 56,000 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 $ 7,000 14,000 10,000 6,000 9,000 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable 24,000 Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Portions of the financial statements for Alliance Technologies are provided below.
ALLIANCE TECHNOLOGIES
Income Statement
For the year ended December 31, 2021
Net sales
$405,000
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
$235,000
70,000
17,000
27,000
349,000
Net income
$ 56,000
ALLIANCE TECHNOLOGIES
Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020
$ 7,000
14,000
10,000
6,000
Decrease in accounts receivable
Increase in inventory
Decrease in prepaid rent
Increase in salaries payable
Decrease in accounts payable
Increase in income tax payable
9,000
24,000
Required:
Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash
outflows and any decrease in cash as negative amounts.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73fe7376-a064-4fc1-9494-21faebfc344b%2F66af2b05-3f6b-4bbf-ae42-bf3ff2255f74%2Fpcdy4n8_processed.png&w=3840&q=75)
Transcribed Image Text:Portions of the financial statements for Alliance Technologies are provided below.
ALLIANCE TECHNOLOGIES
Income Statement
For the year ended December 31, 2021
Net sales
$405,000
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
$235,000
70,000
17,000
27,000
349,000
Net income
$ 56,000
ALLIANCE TECHNOLOGIES
Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020
$ 7,000
14,000
10,000
6,000
Decrease in accounts receivable
Increase in inventory
Decrease in prepaid rent
Increase in salaries payable
Decrease in accounts payable
Increase in income tax payable
9,000
24,000
Required:
Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash
outflows and any decrease in cash as negative amounts.)
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