6. (TCO F) Cash flows from operating activities (indirect and direct methods). Presented below is the income statement of Smiling Tiger, Inc. Sales $525,000 Cost of goods sold 260,000 Gross profit $265,000 Operating expenses 106,000 Income before income taxes 159,000 Income taxes 63,600 Net income $95,400 In addition, the following information related to net changes in working capital is presented. Debit Credit Cash $10,000 Accounts receivable 15,000 Inventories $36,000 Salaries payable (operating expenses) 15,000 Accounts payable 23,000 Income taxes payable 5,000 Depreciation expense for the year was $23,000 Deferred tax liability account increased $3,400 Required: Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.
Paper#9117 | Written in 18-Jul-2015Price : $25