The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $511,000 290,500 Cost of merchandise sold Gross profit $220,500 Operating expenses: Depreciation expense Other operating expenses Total operating expenses Income before income tax Income tax expense Net income $39,200 105,000 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase Decrease Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable 144,200 $76,300 21,700 $54,600 Cash flows from (used for) operating activities: Cash received from customers Cash paid for merchandise Cash paid for operating expenses Cash paid for income taxes Net cash flow from operating activities ✓ a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Booker T Industries Inc. Cash Flows from Operating Activities Section For the year ended on June 30 $(11,760) 3,920 (3,780) (7,980) 1,260 (2,660) 144,200 X 294,240 X 106.260 X 19,040 X 79.500 X
The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $511,000 290,500 Cost of merchandise sold Gross profit $220,500 Operating expenses: Depreciation expense Other operating expenses Total operating expenses Income before income tax Income tax expense Net income $39,200 105,000 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase Decrease Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable 144,200 $76,300 21,700 $54,600 Cash flows from (used for) operating activities: Cash received from customers Cash paid for merchandise Cash paid for operating expenses Cash paid for income taxes Net cash flow from operating activities ✓ a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Booker T Industries Inc. Cash Flows from Operating Activities Section For the year ended on June 30 $(11,760) 3,920 (3,780) (7,980) 1,260 (2,660) 144,200 X 294,240 X 106.260 X 19,040 X 79.500 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows:
Sales
$511,000
290,500
Cost of merchandise sold
Gross profit
Operating expenses:
Depreciation expense
Other operating expenses
Total operating expenses
Income before income tax
Income tax expense
Net income
Accounts receivable (net)
Inventories
Prepaid expenses
Accounts payable (merchandise creditors)
Accrued expenses payable (operating expenses)
Income tax payable
$39,200
105,000
Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:
Increase
Decrease
Cash flows from (used for) operating activities:
Cash received from customers
Cash paid for merchandise
Cash paid for operating expenses
Cash paid for income taxes
Net cash flow from operating activities
✓
✓
$220,500
✓
144,200
$76,300
21,700
$54,600
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Booker T Industries Inc.
Cash Flows from Operating Activities Section
For the year ended on June 30
144,200 X
294,240 X
106,260 X
$(11,760)
3,920
(3,780)
(7,980)
19,040 X
1,260
(2,660)
79,500 X
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