The income statement and additional data of Newbury Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newbury's statement of cash flows for the year ended December 31, 2021, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Data table Newbury Travel Products, Inc. Income Statement Year Ended December 31, 2021 Revenues: Service revenue $ 238,000 Dividend revenue 8,600 $ 246,600 Expenses: Cost of goods sold 97,000 Salary expense 61,000 Depreciation expense 21,000 Advertising expense 3,000 Interest expense 2,100 12,000 196,100 Income tax expense ge $ 50,500 Net income - X
The income statement and additional data of Newbury Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newbury's statement of cash flows for the year ended December 31, 2021, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Data table Newbury Travel Products, Inc. Income Statement Year Ended December 31, 2021 Revenues: Service revenue $ 238,000 Dividend revenue 8,600 $ 246,600 Expenses: Cost of goods sold 97,000 Salary expense 61,000 Depreciation expense 21,000 Advertising expense 3,000 Interest expense 2,100 12,000 196,100 Income tax expense ge $ 50,500 Net income - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The income statement and additional data of Newbury Travel Products, Inc., follow:
(Click the icon to view the income statement.)
(Click the icon to view the additional data.)
Requirements
1. Prepare Newbury's statement of cash flows for the year ended December 31, 2021, using the indirect method.
2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and
give the rationale for your evaluation.
Data table
Newbury Travel Products, Inc.
Income Statement
Year Ended December 31, 2021
Revenues:
Service revenue
$
238,000
Dividend revenue
8,600
$ 246,600
Expenses:
Cost of goods sold
97,000
Salary expense
61,000
Depreciation expense
21,000
Advertising expense
3,000
Interest expense
2,100
12,000
196,100
Income tax expense
ge
$
50,500
Net income
- X
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