Portions of the financial statements for Clear Transmissions Company are provide
ID: 2568209 • Letter: P
Question
Portions of the financial statements for Clear Transmissions Company are provided below.
CLEAR TRANSMISSIONS COMPANY
Income Statement
For the Year Ended December 31, 2016 ($ in 000s)
Sales 1,620
COGs 648)
972
Gross Margin
Salaries expense $280
Depreciation exp 205
Patent Amort exp 20
Interest exp 60
Loss on sale of cash equiv (576)
Income before taxes 396
Income tax expense (198)
Net Income $198
CLEAR TRANSMISSIONS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015 ($in 000s)
Year
2016 2015 Change
Cash $ 117 110 7
Accounts Receivable 230 247 (17)
Inventory 445 460 (15)
Accounts payable 165 154 11
Salaries payable 85 96 (11)
Interest payable 40 30 10
Income taxes payable 30 20 10
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the indirect method. (Enter your answer in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
Cash Flows from Operating Activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net Cash flows from operating activities $______________
Explanation / Answer
Statement of Cash Flows AS ON DECEMBER 31 2016 Amount in $ Amount in $ Net income $ 198.00 Cash flows from operating activities Adjustments for non Cash Effects: Depreciation $ 205.00 Patent Amortization $ 20.00 $ 225.00 (Increase) / Decrease in Account receivables $ 17.00 Inventory Decrease / (Increase) $ 15.00 Salaries Payable $ -11.00 Interest Payable $ 10.00 Income tax payable $ 10.00 Accounts payable Increase / ( Decrese) $ 11.00 $ 52.00 Net cash from operating activities $ 475.00