Portions of the financial statements for Clear Transmissions Company are provide
ID: 2532235 • Letter: P
Question
Portions of the financial statements for Clear Transmissions Company are provided below.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
Income Statement
For the Year Ended December 31, 2018 ($ in 000s) Sales $ 1,800 Cost of goods sold 720 Gross margin 1,080 Salaries expense $ 316 Depreciation expense 220 Patent amortization expense 26 Interest expense 72 Loss on sale of cash equivalents 14 648 Income before taxes 432 Income tax expense 216 Net Income $ 216
Explanation / Answer
Calculation of cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method (in '000) Cash received from Customers $1,817.00 Cash paid to suppliers -$688.00 Cash aid to employees -$330.00 Interest Paid -$59.00 Income Tax paid -$206.00 Cash flow from Operating activities $534.00 Working Cash received from customers Accounts receivables 2017 $256.00 Add : Sales $1,800.00 Less : Accounts Receivables 2018 $239.00 Cash received from customers $1,817.00 Cash paid to suppliers Accounts Payable 2017 $166.00 Add: Cost of good sold $720.00 Less : Accounts Payable 2018 $180.00 Less : Decrease in Inventory $18.00 Cash paid to suppliers $688.00 Cash paid to employees Salaries Payable 2017 $102.00 Add : Salaries Expense $316.00 Less : Salaries Payable 2018 $88.00 Cash paid to employees $330.00 Interest Paid Interest Payable 2017 $36.00 Add : Interest Expense $72.00 Less : Interest Payable 2018 $49.00 Interest Paid $59.00 Income Tax paid Income tax payable 2017 $26.00 Add : Income Tax expense $216.00 Less : Income Tax payable 2018 $36.00 Income Tax Paid $206.00