Income Statement Balance Sheet $ 98,500 (62,000) (18,000) (9,000) Sales Cost of Goods Sold Salaries Expense Depreciation Expense Net Income 9,500 $2,000 1,600 Accounts Receivable decrease Merchandise Inventory increase Salaries Payable increase 450

Income Statement Balance Sheet $ 98,500 (62,000) (18,000) (9,000) Sales Cost of Goods Sold Salaries Expense Depreciation Expense Net Income 9,500 $2,000 1,600 Accounts Receivable decrease Merchandise Inventory increase Salaries Payable increase 450

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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Question

Use the following information from Chocolate Company’s financial statements to determine operating net cash flows (indirect method).

Income Statement
Balance Sheet
$ 98,500
(62,000)
(18,000)
(9,000)
Sales
Cost of Goods Sold
Salaries Expense
Depreciation Expense
Net Income
9,500
$2,000
1,600
Accounts Receivable decrease
Merchandise Inventory increase
Salaries Payable increase
450

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