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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me prepare the statement of cash flow using the indirect method. Thank you

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.
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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