Sales ..... $511,000 Cost of merchandise sold 290,500 Gross profit ...... Operating expenses: Depreciation expense Other operating expenses Total operating expenses $220,500 $ 39,200 ..... 105,000 144,200 $ 76,300 Income before income tax 21,700 Income tax expense $ 54,600 Net income .. .... Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase (Decrease) Accounts receivable (net) . $(11,760) 3,920 Inventories ..... Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable...... (3,780) (7,980) 1,260 (2,660)

Which of the following transactions would not appear on a statement of cash flows prepared by the direct method? A net loss from operations O The payment of cash dividends that were declared last year The amount paid to acquire treasury stock Payment of last year's income tax liability

Hought Office Machines, Inc.'s accountants assembled the following selected data for the year ended December 31, 2018: E (Click the icon to view the current accounts.) E (Click the icon to view the transaction data.) Requirement 1. Prepare Hought Office Machines, Inc.'s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Hought Office Machines, Inc. Data Table Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Transaction Data for 2018: Net income Net income..... $ 60,000 Adjustments to reconcile net income to net cash Purchase of treasury stock. 14,300 provided by (used for) operating activities: Issuance of common stock for cash. 36,600 Loss on sale of equipment. 6,000…

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