Vaughn Corporation had the following 2020 income statement. Sales revenue $187,000 Cost of goods sold 124,000 Gross profit 63,000 Operating expenses (includes depreciation of $19,000) 45,000 Net income $18,000 The following accounts increased during 2020: Accounts Receivable $12,000, Inventory $9,000, Accounts Payable $14,000. Prepare the cash flows from operating activities section of Vaughn's 2020 statement of cash flows using the indirect method. Vaughn Corporation Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2020 Cash at Beginning of Period Net Income Adjustments to reconcile net income to 18000
Vaughn Corporation had the following 2020 income statement. Sales revenue $187,000 Cost of goods sold 124,000 Gross profit 63,000 Operating expenses (includes depreciation of $19,000) 45,000 Net income $18,000 The following accounts increased during 2020: Accounts Receivable $12,000, Inventory $9,000, Accounts Payable $14,000. Prepare the cash flows from operating activities section of Vaughn's 2020 statement of cash flows using the indirect method. Vaughn Corporation Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2020 Cash at Beginning of Period Net Income Adjustments to reconcile net income to 18000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Vaughn Corporation had the following
2020 income statement.
Sales revenue $187,000
Cost of goods sold 124,000
Gross profit 63,000
Operating expenses (includes
depreciation of $19,000) 45,000
Net income $18,000
The following accounts increased
during 2020: Accounts Receivable
$12,000, Inventory $9,000, Accounts
Payable $14,000. Prepare the cash
flows from operating activities section
of Vaughn's 2020 statement of cash
flows using the indirect method.
Vaughn Corporation
Statement of Cash Flows-Indirect Method (Partial)
For the Year Ended December 31, 2020
Cash at Beginning of Period
Net Income
Adjustments to reconcile net income to
Net Cash Used by Operating Activities
Decrease in Accounts Receivable
Decrease in Inventory
Cash Payment to Suppliers
Increase in Accounts Payable
Net Cash Provided by Operating Activities
Q
Q
14000
C
18000
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