The two independent cases are listed below: Case A Case B 2010 2009 2010 2009 Sa
ID: 2348313 • Letter: T
Question
The two independent cases are listed below:Case A Case B
2010 2009 2010 2009
Sales revenue $ 10,000 $ 9,000 $ 21,000 $ 18,000
Cost of goods sold 6,000 5,500 12,000 11,000
Gross profit 4,000 3,500 9,000 7,000
Depreciation expense 1,000 1,000 2,000 1,500
Salaries expense 2,500 2,000 5,000 5,000
Net income 500 500 2,000 500
Accounts receivable 300 400 750 600
Inventories 600 500 790 800
Accounts payable 800 700 800 850
Salaries payable 1,000 1,200 200 250
Required:
Compute the net cash flow from operating activities section of the 2010 statement of cash flows using the direct method. (Omit the "$" sign in your response.)
Net Cash flows
Case A $
Case B $
Explanation / Answer
Compute the net cash flow from operating activities section of the 2010 statement of cash flows using the direct method. (Omit the "$" sign in your response.)
Net Cash flows
Case A $1,400
Case B $3,760
Case A Case B
Net Income $500 $2,000
Add:
Depreciation expense $1,000 $2,000
Decrease in A/R $100
Increase in A/R ($150)
Increase in Inventories ($100)
Decrease in Inventories $10
Increase in A/P $100
Decrease in A/P ($50)
Decrease in Salaries payable ($200) ($50)
Cash flow from operating
activities $1,400 $3,760
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