The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: P 6,100,000 3.700,000 Sales Cost of goods sold Gross profit Gain on sale of equipment Salaries expense P2,400,000 100,000 -820,000 Insurance expense -380,000 Depreciation expense 220,000 Profit before interest and income tax P1,080,000 Interest expense 120,000 Profit before income tax P960,000 288.000 P672,000 Income tax expense Profit The following information is also available: Decrease in accounts receivable P120,000 Increase in inventory 280,000 Decrease in accounts payable Increase in salaries payable 160,000 100,000 Increase in prepaid insurance 180,000 Decrease in interest payable Increase in income tax payable 30,000 18,000 Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the indirect method.
The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: P 6,100,000 3.700,000 Sales Cost of goods sold Gross profit Gain on sale of equipment Salaries expense P2,400,000 100,000 -820,000 Insurance expense -380,000 Depreciation expense 220,000 Profit before interest and income tax P1,080,000 Interest expense 120,000 Profit before income tax P960,000 288.000 P672,000 Income tax expense Profit The following information is also available: Decrease in accounts receivable P120,000 Increase in inventory 280,000 Decrease in accounts payable Increase in salaries payable 160,000 100,000 Increase in prepaid insurance 180,000 Decrease in interest payable Increase in income tax payable 30,000 18,000 Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the indirect method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....
Related questions
Question
Please help me prepare the statement of
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning