The income statement for Stallion Company for the aurrent year ended June 30 and balances of selected accounts at the beginning and end of the year are as follows: Sales $235,050 Cost of merchandise sold 81,110 Gross profit $153,940 Operating expenses: Depreciation expense $20,300 Other operating expenses 60,960 Total operating expenses 81,260 Income before income tax $72,680 Income tax expense 21,020 Net income $51,660 End Beginning of Year of Year Accounts receivable (net) $18,960 $16,500 Inventories 48,610 42,290 Prepaid expenses 7,650 8,420 Accounts payable (merchandise creditors) 35,650 33,080 Accrued expenses payable (operating expenses) 10,070 10,980 Income tax payable 1,910 1,910 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative Stallion Company Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from (used for) operating activities: Net cash flow from operating activities
The income statement for Stallion Company for the aurrent year ended June 30 and balances of selected accounts at the beginning and end of the year are as follows: Sales $235,050 Cost of merchandise sold 81,110 Gross profit $153,940 Operating expenses: Depreciation expense $20,300 Other operating expenses 60,960 Total operating expenses 81,260 Income before income tax $72,680 Income tax expense 21,020 Net income $51,660 End Beginning of Year of Year Accounts receivable (net) $18,960 $16,500 Inventories 48,610 42,290 Prepaid expenses 7,650 8,420 Accounts payable (merchandise creditors) 35,650 33,080 Accrued expenses payable (operating expenses) 10,070 10,980 Income tax payable 1,910 1,910 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative Stallion Company Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from (used for) operating activities: Net cash flow from operating activities
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 5.8MCP
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