Income statement for the year ended December 31, 2018 Revenues 1,328 Cost of goo
ID: 2535701 • Letter: I
Question
Income statement for the year ended December 31, 2018
Revenues
1,328
Cost of goods sold
587
Rent expenses
152
Wages expenses
136
Insurance expenses
53
Other SG&A (includes depreciation expenses)
198
Interest expenses
30
Gain on sale of asset
(5)
1,151
Income before tax
177
Tax
62
Net income
115
Cash flow provided by operating activities (indirect method), for the year ended December 31, 2018
Net income
115
Depreciation
32
Gain on sale of asset
(5)
142
Increases/decreases in Accounts receivable
26
Inventories
(35)
Prepaid rent
13
Accounts payable
28
Wages payable
(20)
Tax payable
5
Interest Payable
(2)
Advances from customers
(3)
Other accrued SG&A
5
17
Net cash provided by operating activities
159
1) Prepare the net cash flow from operating activities section of the cash flow statement using the direct method.
Income statement for the year ended December 31, 2018
Revenues
1,328
Cost of goods sold
587
Rent expenses
152
Wages expenses
136
Insurance expenses
53
Other SG&A (includes depreciation expenses)
198
Interest expenses
30
Gain on sale of asset
(5)
1,151
Income before tax
177
Tax
62
Net income
115
Explanation / Answer
Solution: