Schedule for Calculation of Cash Generated From Operating Activities Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $765,000 Cost of goods sold 550,000 Gross profit $215,000 Operating expenses 30,000 Income before taxes $185,000 Income tax expense 65,000 Net income $120,000 Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown. 20-2 20-1 Cash $60,000 $20,000 Accounts receivable 70,000 100,000 Merchandise inventory 80,000 125,000 Accounts payable 55,000 90,000
Schedule for Calculation of Cash Generated From Operating Activities Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $765,000 Cost of goods sold 550,000 Gross profit $215,000 Operating expenses 30,000 Income before taxes $185,000 Income tax expense 65,000 Net income $120,000 Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown. 20-2 20-1 Cash $60,000 $20,000 Accounts receivable 70,000 100,000 Merchandise inventory 80,000 125,000 Accounts payable 55,000 90,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schedule for Calculation of Cash Generated From Operating Activities
Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown.
| Net sales | $765,000 |
| Cost of goods sold | 550,000 |
| Gross profit | $215,000 |
| Operating expenses | 30,000 |
| Income before taxes | $185,000 |
| Income tax expense | 65,000 |
| Net income | $120,000 |
Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown.
| 20-2 | 20-1 | |||
| Cash | $60,000 | $20,000 | ||
| 70,000 | 100,000 | |||
| Merchandise inventory | 80,000 | 125,000 | ||
| Accounts payable | 55,000 | 90,000 |
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