Excel_Student_05-27kh

Excel_Student_05-27kh - Cash paid for inventory $(248,000)...

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05-27 Name: kathy haines Enter the appropriate numbers/formulas in the blue-shaded cells. Enter amounts to be deducted as negative numbers. The word “Wrong” will appear to the left of incorrect entries. Computation of Effects of Adjustments Income Statement of Statement Adjustments Cash Flows Sales $675,400 (5,000) $670,400 Cost of goods sold (243,500) (5,800) 1,300 (248,000) Depreciation expense (51,000) 51,000 - Salaries expense (124,600) - (124,600) Interest expense (11,300) (400) (11,700) Income taxes expense (44,000) 1,800 (42,200) Other expenses (98,700) 1,100 (97,600) Net income $102,300 $146,300 (a) Direct Method Operating activities: Cash collected from customers $670,400
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Unformatted text preview: Cash paid for inventory $(248,000) Cash paid for salaries (124,600) Cash paid for interest (11,700) Cash paid for income taxes (42,200) Cash paid for other expenses (97,600) (524,100) Net cash provided by operating activities $146,300 (b) Indirect Method Operating Activities: Net Income $102,300 Add: Depreciation $51,000 Increase in Accounts payable 1,300 Increase in income taxes payable 1,800 Decrease in prepaid expenses 1,100 55,200 Less: Increase in accounts receivable $(5,000) Increase in inventory (5,800) Decrease in interest payable (400) (11,200) Net cash provided by operating activities $146,300 f...
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Excel_Student_05-27kh - Cash paid for inventory $(248,000)...

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