The income statement of Vince Gill Company is shown below. VINCE GILL COMPANY IN
ID: 2469369 • Letter: T
Question
The income statement of Vince Gill Company is shown below.
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,980,380
$1,894,360
4,445,410
6,339,770
1,605,060
4,734,710
2,245,670
440,640
693,860
1,134,500
$1,111,170
Additional information:
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Vince Gill Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
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The income statement of Vince Gill Company is shown below.
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,980,380
$1,894,360
4,445,410
6,339,770
1,605,060
4,734,710
2,245,670
440,640
693,860
1,134,500
$1,111,170
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,980,380
$1,894,360
4,445,410
6,339,770
1,605,060
4,734,710
2,245,670
440,640
693,860
1,134,500
$1,111,170
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,980,380
$1,894,360
4,445,410
6,339,770
1,605,060
4,734,710
2,245,670
440,640
693,860
1,134,500
$1,111,170
VINCE GILL COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,980,380
Cost of goods sold Beginning inventory$1,894,360
Purchases4,445,410
Goods available for sale6,339,770
Ending inventory1,605,060
Cost of goods sold4,734,710
Gross profit2,245,670
Operating expenses Selling expenses440,640
Administrative expenses693,860
1,134,500
Net income$1,111,170
Explanation / Answer
Cash Flow from Operating Activities
Net Income 1111170 Add Depreciation Expense 56710 Add Decrease in Accounts Receivable 317970 less Increase in Prepaiid Expenses (165980) less Decrease in Accounts Payable (274890) less decreased Accrued Expenses payable (111070) Net cash flow from Operating Activities $933910Related Questions
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