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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me prepare the statement of
Transcribed Image Text: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
Sales
Cost of goods sold
Gross profit
3,700,000
P2,400,000
Gain on sale of equipment
Salaries expense
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
Income tax expense
288,000
P672,000
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
Increase in prepaid insurance
Decrease in interest payable
Increase in income tax payable
160,000
100,000
180,000
30,000
18,000
Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the indirect
method.
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