FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following is the operating section of the statement of
Collections from customers $ 28,000
Payments to suppliers for inventory purchases (13,000 )
Payments for operating expenses (9,000 )
Payments for income taxes (2,260 )
Cash provided by operating activities 3,740
The following information is obtained from the income statement of Battery Builders:
Net income $ 6,740
In addition, the following information is obtained from the comparative
Change in
Change in inventory 3,000
Change in accounts payable 2,000
Change in accrued payables (related to operating expense) (2,000 )
Change in income taxes payable (1,000 )
Required:
Prepare a complete accrual-basis income statement for the current year.
Compute the cash flows from operations using the indirect approach (that is, start with accrual-basis net income and adjust for various items to obtain cash flows from operations).
Transcribed Image Text:Required:
1. Prepare a complete accrual-basis income statement for the current year.
2. Compute the cash flows from operations using the Indirect approach (that is, start with accrual-basis net income and adjust for
various items to obtain cash flows from operations).
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a complete accrual-basis income statement for the current year. (Amounts to be deducted should be indicated by a
minus sign.)
Sales
Less:
Depreciation expenses
Income tax expense
Cost of goods sold
Operating expenses
Net income
$
0
< Required 1
Required 2 >
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