Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 4 The profit or loss section of the statement of comprehensive income of Jin Company for the year ended December 31, 2020 is reproduced below: Sales Cost of Goods Sold Gross Profit Gain on sale of equipment Salaries expense Insurance expense Depreciation expense Profit before interest and income tax Interest expense Profit before income tax Income tax expense Profit The following are also available info: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable P6,100,000 (3,700,000) P2,400,000 100,000 (820,000) (380,000) (220,000) P1,080,000 (120,000) P 960,000 (288,000) P 672,000 P120,000 280,000 160,000 100,000 180,000 30,000 18,000

Problem 4 The profit or loss section of the statement of comprehensive income of Jin Company for the year ended December 31, 2020 is reproduced below: Sales Cost of Goods Sold Gross Profit Gain on sale of equipment Salaries expense Insurance expense Depreciation expense Profit before interest and income tax Interest expense Profit before income tax Income tax expense Profit The following are also available info: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable P6,100,000 (3,700,000) P2,400,000 100,000 (820,000) (380,000) (220,000) P1,080,000 (120,000) P 960,000 (288,000) P 672,000 P120,000 280,000 160,000 100,000 180,000 30,000 18,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

STATEMENT OF CASH FLOW

Problem 4 The profit or loss section of the statement of comprehensive income of Jin Company for the year ended December 31, 2020 is reproduced below: Sales Cost of Goods Sold Gross Profit Gain on sale of equipment Salaries expense Insurance expense Depreciation expense Profit before interest and income tax Interest expense Profit before income tax Income tax expense Profit The following are also available info: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable P6,100,000 (3,700,000) P2,400,000 100,000 (820,000) (380,000) (220,000) P1,080,000 (120,000) P 960,000 (288,000) P 672,000 P120,000 280,000 160,000 100,000 180,000 30,000 18,000 Instruction: Prepare the operating activities section of Jin Company's Statement of Cash Flows for the year ended 2020 using (a) indirect method and (b) direct method.
Transcribed Image Text:Problem 4 The profit or loss section of the statement of comprehensive income of Jin Company for the year ended December 31, 2020 is reproduced below: Sales Cost of Goods Sold Gross Profit Gain on sale of equipment Salaries expense Insurance expense Depreciation expense Profit before interest and income tax Interest expense Profit before income tax Income tax expense Profit The following are also available info: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance Decrease in interest payable Increase in income tax payable P6,100,000 (3,700,000) P2,400,000 100,000 (820,000) (380,000) (220,000) P1,080,000 (120,000) P 960,000 (288,000) P 672,000 P120,000 280,000 160,000 100,000 180,000 30,000 18,000 Instruction: Prepare the operating activities section of Jin Company's Statement of Cash Flows for the year ended 2020 using (a) indirect method and (b) direct method.
Expert Solution
steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
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
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS