Prepare the operating section of the statement of cash flowsThank you for your help the photos has the information and the format they need to do the question Financial Corp.Income StatementFor the Year Ended 12/31/2020REVENUESSales Revenue1,800,000.00Interest Revenue$ 700,000.00EXPENSESLoss on Sale of Equipment50,000.00Cost of Goods SoldSalaries ExpenseDepreciation ExpenseInterest ExpenseIncome Taxes ExpenseNET INCOME$ 900,000.00%24$ 600,000.00S 250,000.00%24700,000.0025,000.00(25,000.00$4Change in Current AssetsAccount NameChangeAmountCashIncrease535,500.00Accounts ReceivableIncrease12,000.00InventoryDecrease2,500.00Changes in Current LiabilitiesAccount NameChangeAmountAccounts PayableDecrease12,500.00Salaries PayableIncrease2,500.00Interest PayableDecrease1,500.00 Operating, IndirectAdjustments for reconciliationCASH FROM OPERATINGАCTIVITIES

Cash Flow from Operating Activity Particulars $ Net Income (25,000.00) Add Non-Cash Expenses:…

Answered: Prepare the operating section of the…

Prepare the operating section of the statement of cash flows Thank you for your help the photos has the information and the format they need to do the question

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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Question

Prepare the operating section of the statement of cash flows Thank you for your help the photos has the information and the format they need to do the question

Financial Corp.
Income Statement
For the Year Ended 12/31/2020
REVENUES
Sales Revenue
1,800,000.00
Interest Revenue
$ 700,000.00
EXPENSES
Loss on Sale of Equipment
50,000.00
Cost of Goods Sold
Salaries Expense
Depreciation Expense
Interest Expense
Income Taxes Expense
NET INCOME
$ 900,000.00
%24
$ 600,000.00
S 250,000.00
%24
700,000.00
25,000.00
(25,000.00
$4
Change in Current Assets
Account Name
Change
Amount
Cash
Increase
535,500.00
Accounts Receivable
Increase
12,000.00
Inventory
Decrease
2,500.00
Changes in Current Liabilities
Account Name
Change
Amount
Accounts Payable
Decrease
12,500.00
Salaries Payable
Increase
2,500.00
Interest Payable
Decrease
1,500.00

Operating, Indirect
Adjustments for reconciliation
CASH FROM OPERATING
АCTIVITIES

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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