en se the following income statement and information about selected current asse
ID: 2491598 • Letter: E
Question
en se the following income statement and information about selected current assets and current liabilities to 26. U calculate the net cash provided or used by operating activities using the indirect method. (24 points) PULLMAN COMPANY Income Statement For Year Ended December 31, 2015 $180,000 04 Sales Cost of goods sold Gross profit from sales Operating expenses: $76,000 Salaries and wages expense Depreciation expense Rent expense Interest expense $25,000 7,000 7,200 1,900 $34,900 Income from operations Loss on sale of land Net income $31.400 Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, are as follows Balance Dec. 31, 2015Dec. 31, 2014 $24,000 Accounts receivable Merchandise inventory Prepaid rent Accounts payable Salaries and wages payable Interest payable $27,600 22,300 550 27,100 10,400 300 20,000 400 26,000 9,000 250Explanation / Answer
Statement of Cash Flow from the Operating Activities:
Net Income $31400 Add: Depreciation being non-cash item 7000 Add: Loss on sale of land being non operating activity 3500 Adjustment of Current Assets and Current Liabilities: Less: increase in accounts receivable ($3600) Less: increase in mer. inventory (2300) Less: increase in prepaid rent ( 150) Add: increase in accounts payable 1100 add: increase in salaries and wages payable 1400 Add: increase in interest payable 50 (3500) Net Cash inflow from the operating activities= $38400Related Questions
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