For the year 2018, a company sold 400 units for $100 per unit. The cost of goods sold is $62.50 per unit and the shipping charges paid are $3 per unit. The additional information is summarized as follows: Description Beginning inventory Ending inventory |Operating expenses: |Advertising expense Bank Fees Telephone expenses Utilities |Office Supplies expense Sale of equipments Repayment of note payable Amount $9,375 $6,250 $2,500 $100 $1,000 $500 $500 $3,000 $5,000 The income taxes paid for the year are $2,500. Compute the cash flows from the operating activities using the direct method. a. The cash flows from the operating activities is $12,325. b. The cash flows from the operating activities is $11,025. c. The cash flows from the operating activities is $9,825. d. The cash flows from the operating activities is $12,825.

For the year 2018, a company sold 400 units for $100 per unit. The cost of goods sold is $62.50 per unit and the shipping charges paid are $3 per unit. The additional information is summarized as follows: Description Beginning inventory Ending inventory |Operating expenses: |Advertising expense Bank Fees Telephone expenses Utilities |Office Supplies expense Sale of equipments Repayment of note payable Amount $9,375 $6,250 $2,500 $100 $1,000 $500 $500 $3,000 $5,000 The income taxes paid for the year are $2,500. Compute the cash flows from the operating activities using the direct method. a. The cash flows from the operating activities is $12,325. b. The cash flows from the operating activities is $11,025. c. The cash flows from the operating activities is $9,825. d. The cash flows from the operating activities is $12,825.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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