The statement of income of Bramble Corporation is presented here. BRAMBLE CORPORATION Statement of Income Year Ended November 30, 2022 Sales Cost of goods sold Gross profit Salaries expense Operating expenses Depreciation expense Income before income tax Income tax expense Net income $6,468,000 4,116,000 2,352,000 719,040 179,760 67,200 1,386,000 207,480 $1,178,520 Additional information: 1. 2. 3. 5. Accounts receivable increased $252,000 during the year, and inventory decreased $420,000. Prepaid expenses, which relate to administrative expenses, increased $126,000 during the year. Accounts payable to suppliers of merchandise decreased $294,000 during the year. Accrued salaries payable decreased $84,000 during the year. Income tax payable increased $54,600 during the year. Cash flows from operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense Increase in accounts receivable BRAMBLE CORPORATION Statement of Cash Flows (Partial) For the Year Ended November 30, 2022 Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued salaries payable $ V $ 1178520 4

The statement of income of Bramble Corporation is presented here. BRAMBLE CORPORATION Statement of Income Year Ended November 30, 2022 Sales Cost of goods sold Gross profit Salaries expense Operating expenses Depreciation expense Income before income tax Income tax expense Net income $6,468,000 4,116,000 2,352,000 719,040 179,760 67,200 1,386,000 207,480 $1,178,520 Additional information: 1. 2. 3. 5. Accounts receivable increased $252,000 during the year, and inventory decreased $420,000. Prepaid expenses, which relate to administrative expenses, increased $126,000 during the year. Accounts payable to suppliers of merchandise decreased $294,000 during the year. Accrued salaries payable decreased $84,000 during the year. Income tax payable increased $54,600 during the year. Cash flows from operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense Increase in accounts receivable BRAMBLE CORPORATION Statement of Cash Flows (Partial) For the Year Ended November 30, 2022 Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued salaries payable $ V $ 1178520 4

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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