Compute Cash Provided by Operating Activities Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows. Horn Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $1,220,000 Cost of goods sold 740,000 Gross profit $480,000 Operating expenses 142,000 Operating income $338,000 Other revenues and expenses: Interest revenue $420 Interest expense (1,200) (780) Income before taxes $337,220 Income tax expense 118,000 Net income $219,220 Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: 20-2 20-1 Accounts receivable $135,000 $122,600 Merchandise inventory 145,300 158,900 Accounts payable 45,000 87,100 Income tax payable 2,000 1,000 Supplies and prepayments 11,300 6,800 Accrued and withheld payroll taxes 2,750 3,700 Accrued interest receivable 90 210 Accrued interest payable 240 160 Depreciation expense for 20-2, included in operating expenses on the income statement, was $32,000. Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...

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Compute Cash Provided by Operating Activities

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Horn Company's condensed income statement for the year ended December 31, 20-2, was as follows:

Net sales		$1,220,000
Cost of goods sold		740,000
Gross profit		$480,000
Operating expenses		142,000
Operating income		$338,000
Other revenues and expenses:
Interest revenue	$420
Interest expense	(1,200)	(780)
Income before taxes		$337,220
Income tax expense		118,000
Net income		$219,220

Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows:

	20-2	20-1
Accounts receivable	$135,000	$122,600
Merchandise inventory	145,300	158,900
Accounts payable	45,000	87,100
Income tax payable	2,000	1,000
Supplies and prepayments	11,300	6,800
Accrued and withheld payroll taxes	2,750	3,700
Accrued interest receivable	90	210
Accrued interest payable	240	160

Depreciation expense for 20-2, included in operating expenses on the income statement, was $32,000.

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Horn Company
Statement of Cash Flows (Partial)
For Year Ended December 31, 20-2
Cash flows from operating activities:
Adjustments for changes in current assets and liabilities related to operating activities:
Noncash expenses:
Net cash provided by operating activities

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