Use the following excerpts from Fromera Company's financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018. Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Gain on Sale of Plant Assets Net Income Accounts Receivable (associated with Sales) Inventory (associated with Inventory) Accounts Payable (associated with Inventory) Accrued Liabilities (associated with Other Expense) Accounts Receivable (associated with Sales) Inventory (associated with Inventory) Accounts Payable (associated with Inventory) Accrued Liabilities (associated with Other Expense) 2018 Income Statement $ 299,000 (135,000) (27,000) (17,000) 16,500 136,500 Balance Sheets Dec. 31, 2018 $45,300 1,600 22,500 900 Dec. 31, 2017 $43,400 1,800 21,250 1.150

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…