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goldtrout992Lv1
28 Sep 2019
Cash flows from Operating Activities Income Statement Indirect Method Direct Method Net income Adjustments: Sales $311 Decrease in accounts receivable 7 Cash receivedfrom customers Gain on sale of equipment 25 Gain on sale of equipment (25)(Not reportedâno cash effect) Cost of goods sold Increase in inventory (13) Increase in accounts payable 19 Cash paid to suppliers(175) Salaries expense (44) 7 Cash paid to employees (37) Depreciation expense (10) Depreciation expense 10 Cash paidfor depreciation Interest expense Decrease in bond discount 4 Cash paid forinterest (10) Insurance expense (23) Decrease in prepaid insurance 10 Cashpaid for insurance Loss on sale of land (7) Loss on sale of land 7 (Notreportedâno cash effect) Income tax expense (29) Increase in income tax payable Cashpaid for income taxes (22) Net Income $223 Net cash flows from operating activities $26Net cash flows from operating activities $-244
Cash flows from Operating Activities
Income Statement Indirect Method Direct Method
Net income
Adjustments:
Sales $311 Decrease in accounts receivable 7 Cash receivedfrom customers
Gain on sale of equipment 25 Gain on sale of equipment (25)(Not reportedâno cash effect)
Cost of goods sold Increase in inventory (13)
Increase in accounts payable 19 Cash paid to suppliers(175)
Salaries expense (44)
7 Cash paid to employees (37)
Depreciation expense (10) Depreciation expense 10 Cash paidfor depreciation
Interest expense Decrease in bond discount 4 Cash paid forinterest (10)
Insurance expense (23) Decrease in prepaid insurance 10 Cashpaid for insurance
Loss on sale of land (7) Loss on sale of land 7 (Notreportedâno cash effect)
Income tax expense (29) Increase in income tax payable Cashpaid for income taxes (22)
Net Income $223 Net cash flows from operating activities $26Net cash flows from operating activities $-244
Trinidad TremblayLv2
28 Sep 2019