The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: Sales P 6,100,000 Cost of goods sold Gross profit Gain on sale of equipment Salaries expense 3.700.000 P2,400,000 100,000 -820,000 Insurance expense -380,000 Depreciation expense 220,000 P1,080,000 Profit before interest and income tax 120,000 P960,000 Interest expense Profit before income tax 288.000 P672.000 Income tax expense Profit The following information is also available: Decrease in accounts receivable P120,000 Increase in inventory Decrease in accounts payable Increase in salaries payable 280,000 160,000 100,000 Increase in prepaid insurance 180,000 Decrease in interest payable Increase in income tax payable 30,000 18,000 Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the direct method.
The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: Sales P 6,100,000 Cost of goods sold Gross profit Gain on sale of equipment Salaries expense 3.700.000 P2,400,000 100,000 -820,000 Insurance expense -380,000 Depreciation expense 220,000 P1,080,000 Profit before interest and income tax 120,000 P960,000 Interest expense Profit before income tax 288.000 P672.000 Income tax expense Profit The following information is also available: Decrease in accounts receivable P120,000 Increase in inventory Decrease in accounts payable Increase in salaries payable 280,000 160,000 100,000 Increase in prepaid insurance 180,000 Decrease in interest payable Increase in income tax payable 30,000 18,000 Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the direct method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...
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