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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Differentiate between cash inflows and cash outflows?
Explain how to prepare statement of cash flows.
How you would use the statement of cash flows in decision making.
Explain the classification of cash flows.
Describe the three basic types of cash flow activities.
Use a typical format to present a net cash flow statement?
What general guidelines can you provide for interpreting the statement of cash flows?
Report cash flows from financing activities.
Explain the purpose, content, and preparation of the statement of cash flows.