Portions of the financial statements for Alliance Technologies are provided belo

Question

Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018 Net sales $ 405,000 Expenses: Cost of goods sold $235,000 Operating expenses 70,000 Depreciation expense 17,000 Income tax expense 27,000 Total expenses 349,000 Net income $ 56,000 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017 Decrease in accounts receivable $ 7,000 Increase in inventory 14,000 Decrease in prepaid rent 10,000 Increase in salaries payable 6,000 Decrease in accounts payable 9,000 Increase in income tax payable 24,000 Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the direct method. (List cash outflows as negative amounts.) ALLIANCE TECHNOLOGIES Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash Flows from Operating Activities: Cash received from customers $ 412,000 Cash paid to suppliers Net cash flows from operating activities $ 412,000

Explanation / Answer

Alliance Technologies

Statement of Cash Flows ( Partial)

For the year ended December 31, 2018

$ $ Cash Flows from Operating Activities Cash received from customers 412,000 Cash paid to suppliers - 258,000 Cash paid for operating expenses - 54,000 Cash Flows before Income Taxes 100,000 Income Taxes Paid -3,000 Net Cash Flows from Operating Activities 97,000

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