Portions of the financial statements for Alliance Technologies are provided belo
ID: 2559604 • Letter: P
Question
Portions of the financial statements for Alliance Technologies are provided below ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018 $302,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $182,000 57,000 15,700 20,500 Total expenses 275,200 Net income $ 26,800 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 5,700 12,700 8,700 4,700 7,700 18,800Explanation / Answer
Answer:-
Alliance Technoogies Cash Flow from opreating activities (Using Indirect Method) Particulars Amount $ Net Income 26800 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 15700 Change in opreating assets & liabilities Decrease in Accounts Receiviable 5700 Increase in Inventory -12700 Decrease in Prepaid rent 8700 Increase in Salaries payable 4700 Decrease in Accounts payable -7700 Increase in Income tax payble payable 18800 Net cash flow from opreating activities 60000