ASQUITH COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenue $5,400,000 Cost of goods sold Beginning inventory $1,780,000 Purchases 3,430,000 Goods available for sale 5,210,000 Ending inventory 1,900,000 Total cost of goods sold 3,310,000 Gross profi t 2,090,000 Operating expenses Depreciation expense 105,000 Amortization expense 20,000 Other expenses 945,000 1,070,000 Net income $1,020,000 Instructions Prepare the operating activities section of the statement of cash fl ows for the year ended December 31, 2012, for Asquith Company, using the indirect method
ASQUITH COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenue $5,400,000 Cost of goods sold Beginning inventory $1,780,000 Purchases 3,430,000 Goods available for sale 5,210,000 Ending inventory 1,900,000 Total cost of goods sold 3,310,000 Gross profi t 2,090,000 Operating expenses Depreciation expense 105,000 Amortization expense 20,000 Other expenses 945,000 1,070,000 Net income $1,020,000 Instructions Prepare the operating activities section of the statement of cash fl ows for the year ended December 31, 2012, for Asquith Company, using the indirect method
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.24MCE
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Question
ASQUITH COMPANY
Income Statement
For the Year Ended December 31, 2012
Sales revenue $5,400,000
Cost of goods sold
Beginning inventory $1,780,000
Purchases 3,430,000
Goods available for sale 5,210,000
Ending inventory 1,900,000
Total cost of goods sold 3,310,000
Gross profi t 2,090,000
Operating expenses
Depreciation expense 105,000
Amortization expense 20,000
Other expenses 945,000 1,070,000
Net income $1,020,000
Instructions
Prepare the operating activities section of the statement of cash fl ows for the year ended
December 31, 2012, for Asquith Company, using the indirect method
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