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Schedule for Calculation of Cash Generated From Operating Activities Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $765,000 Cost of goods sold 550,000 Gross profit $215,000 Operating expenses 30,000 Income before taxes    $185,000 Income tax expense 65,000 Net income $120,000   Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown.   20-2 20-1 Cash   $60,000      $20,000    Accounts receivable   70,000      100,000    Merchandise inventory   80,000      125,000    Accounts payable   55,000      90,000

Schedule for Calculation of Cash Generated From Operating Activities Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $765,000 Cost of goods sold 550,000 Gross profit $215,000 Operating expenses 30,000 Income before taxes    $185,000 Income tax expense 65,000 Net income $120,000   Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown.   20-2 20-1 Cash   $60,000      $20,000    Accounts receivable   70,000      100,000    Merchandise inventory   80,000      125,000    Accounts payable   55,000      90,000

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 11SPB: COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the...
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Schedule for Calculation of Cash Generated From Operating Activities

Zowine Company's condensed income statement for the year ended December 31, 20-2, is shown.

Net sales $765,000
Cost of goods sold 550,000
Gross profit $215,000
Operating expenses 30,000
Income before taxes    $185,000
Income tax expense 65,000
Net income $120,000

 

Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, is shown.

  20-2 20-1
Cash   $60,000      $20,000   
Accounts receivable   70,000      100,000   
Merchandise inventory   80,000      125,000   
Accounts payable   55,000      90,000   
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