Income Statement $972 620 352 200 152 14 166 Sales Cost of goods sold Gross marg
ID: 2587717 • Letter: I
Question
Income Statement $972 620 352 200 152 14 166 Sales Cost of goods sold Gross margin Selling and administrative e "pense Net operating income Gain on sale of equipment Income before taxes Income taxes 50 Net income $116 The company sold equipme..t for $20 that was originally purchased for $7 and that had accumulated depreciation of $1. It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own commor stock. Required Determine the net cash provided by (used in) operating activities for the year.Explanation / Answer
Net cash provided (used by) operating activities is as calculated below:
Working for Depreciation:
Mattix Corporation Statement of Operating Cash Flows For the year ended December 31, 20XX Particulars Amount ($) Amount ($) Cash Flows from operating activities: Net Income 116 Adjustments to reconcile net income to net cash: Depreciation 13 Gain on sale of equipment -14 Decrease in Accounts Receivable (39-40) 1 Decrease in Inventory (43-44) 1 Increase in Accounts Payable (30-26) 4 Decrease in accrued liabilities (15-18) -3 Decrease in Income tax payable (39-40) -1 Total Adjustments 1 Net Cash flows from Operating Activities 117