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,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Required: Using the direct method, prepare a schedule of

Transcribed Image Text:✔ Total operating activities:
$47,600 inflows
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,
accounts payable increased by $228,000, and income taxes payable decreased by $14,400.
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