The Income statement of Vince Gill Company is shown below. VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,900,000 Cost of goods sold $1,900,000 Begtnning Inventory Purchases 4,400,000 6,300,000 1,600,000 Goods avallable for sale Ending Inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses 4,700,000 2,200,000 450,000 700,000 1,150,000 Net Income $1,050,000 Additional Information: 1. Accounts recelvable decreased $360,000 during the year. 2. Prepaid expenses Increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses Include depredation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the Indirect methoc parenthesis e.g. (15,000).)
The Income statement of Vince Gill Company is shown below. VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,900,000 Cost of goods sold $1,900,000 Begtnning Inventory Purchases 4,400,000 6,300,000 1,600,000 Goods avallable for sale Ending Inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses 4,700,000 2,200,000 450,000 700,000 1,150,000 Net Income $1,050,000 Additional Information: 1. Accounts recelvable decreased $360,000 during the year. 2. Prepaid expenses Increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses Include depredation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the Indirect methoc parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Exercise ER
The Income statement of Vince Gill Company Is shown below.
VINCE GILL COMPANY
INCOME STATENENT
FOR THE YEAR ENDED DECENBER 31, 2020
$6,900,000
Sales revenue
Cost of goods sold
Purchases
uauanur Bபrப்பம்Sg:
000 0000
Goods available for sale
6,300,000
Ending Inventory
Cost of goods sold
4,700,000
Gross profit
Operating expenses
Selling expenses
Administratve expenses
ఈ50,000
700,000
1,150,000
$1,050,000
Net Income.
Additional Information:
1. Accounts recelvable decreased $360,000 durIng the year.
2. Prepald expenses Increased S170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased S275,000 during the year.
4. Accrued expenses payable decreased $100,000 durIng the year.
5. Administrative expenses Include depredatlon expense of $60,000.
Prepare the operating activities secton of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the Indirect method
parenthesis e.g. (15,000
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
Adjustments to reconcile net Income to
Expert Solution
Step 1
Statement of cash flows:
This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and the result of these transactions is reported as ending balance of cash at the end of the reported period. The statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.
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