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(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes 550,000 133,000 RM683,000 217,000 65,400 RM151.600 Income taxes Net income + Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. 2. Selling and administrative expense includes goodwill amortization of RM10,000. 3. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. 6. 4. Increase in inventories, RM30,000. 7. Decrease in income taxes payable, RM20,000.

(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes 550,000 133,000 RM683,000 217,000 65,400 RM151.600 Income taxes Net income + Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. 2. Selling and administrative expense includes goodwill amortization of RM10,000. 3. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. 6. 4. Increase in inventories, RM30,000. 7. Decrease in income taxes payable, RM20,000.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E: Identify each of the following items relating to sections of an income statement as Revenue from...
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Required:

(i)            Prepare a cash basis income statement

(ii)           Prepare the cash flows from operating activities using the indirect approach.       

 

(b) Depreciation is often considered a major source of funds. Do you agree? Discuss.   

(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes Income taxes Net income 550,000 133,000 RM683,000 217,000 65,400 RM151.600 +Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. Selling and administrative expense includes goodwill amortization of RM10,000. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. Increase in inventories, RM30,000. Decrease in income taxes payable, RM20,000. 3. 4. 6. 7. 123
Transcribed Image Text:(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes Income taxes Net income 550,000 133,000 RM683,000 217,000 65,400 RM151.600 +Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. Selling and administrative expense includes goodwill amortization of RM10,000. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. Increase in inventories, RM30,000. Decrease in income taxes payable, RM20,000. 3. 4. 6. 7. 123
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