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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement of
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.
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