21.1 HW 1 - 3. Award: 19.34 out of 33.34

3.
Award: 19.34 out of 33.34 points
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 $1,680
Cost of goods sold (672)
Gross margin 1,008
Salaries expense $292
Depreciation expense 210
Patent amortization expense 22
Interest expense 64
Loss on sale of cash equivalents 12 (600)
Income before taxes 408
Income tax expense (204)
Net Income $ 204
CLEAR TRANSMISSIONS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015 ($ in 000s)
Year
2016 2015 Change
Cash $120 $112 $ 8
Accounts receivable 232 250 (18)
Inventory 446 462 (16)
Accounts payable 170 158 12
Salaries payable 86 98 (12)
Interest payable 43 32 11
Income taxes payable 33 22 11
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Clear
Transmissions Company using the direct method . (Enter your answers in thousands (i.e., 5,000 should
be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

*Red text indicates no response was expected in a cell or a formula­based calculation is incorrect; no
points deducted.