vities: flows P1. Cash Flows from Operating Activities: Direct Method Tanucci Clothing Store's income statement follows. Net sales Cost of goods sold: Beginning inventory Net cost of purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Tanucci Clothing Store Income Statement For the Year Ended June 30, 2014 Operating expenses: Sales and administrative salaries expense Other sales and administrative expenses Total operating expenses Income before income taxes Income taxes Net income $1,240,000 3,040,000 $4,280,000 1,400,000 $1,112,000 624,000 $4,900,000 2,880,000 $2,020,000 1,736,000 $ 284,000 78,000 $ 206,000 Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000,

vities: flows P1. Cash Flows from Operating Activities: Direct Method Tanucci Clothing Store's income statement follows. Net sales Cost of goods sold: Beginning inventory Net cost of purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Tanucci Clothing Store Income Statement For the Year Ended June 30, 2014 Operating expenses: Sales and administrative salaries expense Other sales and administrative expenses Total operating expenses Income before income taxes Income taxes Net income $1,240,000 3,040,000 $4,280,000 1,400,000 $1,112,000 624,000 $4,900,000 2,880,000 $2,020,000 1,736,000 $ 284,000 78,000 $ 206,000 Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000,

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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