Preparing statement of cash flows---indirect method McKnight Exercise Equipment,
ID: 2467430 • Letter: P
Question
Preparing statement of cash flows---indirect method
McKnight Exercise Equipment, Inc.
Income Statement
Year ended December 31, 2015
Sales revenue
$714,00
Cost of goods sold
347,000
Gross profit
367,000
Operating expense
Depreciation expense
$52,000
Other operating expense
205,000
Total operating expense
257,000
Net income
$110,000
Prepare the company’s statement of cash flows---indirect method---for the year ended December 31, 2015.
Sales revenue
$714,00
Cost of goods sold
347,000
Gross profit
367,000
Operating expense
Depreciation expense
$52,000
Other operating expense
205,000
Total operating expense
257,000
Net income
$110,000
Explanation / Answer
McKnight Exercise Equipment Inc.
Statement of cash flows for the year ended December 31 2015: Indirect Method
$ Cash flows from operating activities Net income 110,000 Depreciation expense 52,000 Net cash flows from operating activities 162,000