The following data has been taken from the Shine Machinery Inc., income statement and balance sheet: Dec. 31, Jan. 2012 Jan. 1, 2013 Income statement: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . .$375,000 Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 115,000 Amortization of Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000 Gain on Sale of Plant Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ….. 91,000 Loss on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. . 34,000 Balance sheet: Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$345,000 $380,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...513,000 575,000 Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …...23,000 10,000 Accounts Payable (to merchandise suppliers) . . . . . . . . . . . . . . . . …. 389,000 410,000 Accrued Expenses Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. ..170,000 155,000”
- The following data has been taken from the Shine Machinery Inc., income statement and balance sheet:
Dec. 31, Jan. 2012 Jan. 1, 2013
Income statement:
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . .$375,000
Amortization of Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000
Gain on Sale of Plant Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ….. 91,000
Loss on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. . 34,000
Balance sheet:
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...513,000 575,000
Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …...23,000 10,000
Accounts Payable (to merchandise suppliers) . . . . . . . . . . . . . . . . …. 389,000 410,000
Accrued Expenses Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. ..170,000 155,000”
Required:
Use the above information for the preparation of net cash flow from the operating activities through the indirect method for the following year ended 31, December, 2013.”
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