Question

The Income Statement for MDB Inc. follows along with additional information: MDB Corporation Income Statement For...

The Income Statement for MDB Inc. follows along with additional information:

MDB Corporation
Income Statement
For the Year Ended December 31, 2019
Sales Revenue                               500000      

Cost of Goods Sold                               300000

Gross Profit                                   200000

Operating Expenses                               140000

Net Income                                   60000

Additional Information:
Increase in Accounts Receivable                        10000

Increase in Inventory                               5000
          
Decrease in Accounts Payable                       8000

Increase in Accrued Operating Expenses                   6000
Required
1)Prepare the Operations Activity section for the Statement of Cash Flows for 2019 using the direct method
2)Prepare the Operations Activity section for the Statement of Cash Flows for 2019 using the indirect method.


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer- the Operations Activity section for the Statement of Cash Flows for 2019 using the indirect method

Cash flows from operating activities   
Net income $60,000
Adjustments to reconcile net income to operating cash flow
Increase in Accounts receivable (10,000)
Increase in Inventory (5,000)
Decrease in Accounts payable (8,000)
Increase in accrued operating expenses 6,000
(17,000)
Net cash provided by operating activities $43,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,465,000 Cost of goods sold 1,207,850 Gross profit 1,257,150 Operating expenses Salaries expense $ 337,705 Depreciation expense 59,160 Rent expense 66,555 Amortization expenses—Patents 7,395 Utilities expense 27,115 497,930 759,220 Gain on sale of equipment 9,860 Net income $ 769,080 Accounts receivable $ 22,550 increase Accounts payable $ 12,275 decrease Inventory 29,750 increase Salaries payable 2,200 decrease Prepare the operating...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,735,000 Cost of goods sold 850,150 Gross profit 884,850 Operating expenses Salaries expense $ 237,695 Depreciation expense 41,640 Rent expense 46,845 Amortization expenses—Patents 5,205 Utilities expense 19,085 350,470 534,380 Gain on sale of equipment 6,940 Net income $ 541,320 Accounts receivable $ 32,400 increase Accounts payable $ 10,650 decrease Inventory 24,100 increase Salaries payable 5,100 decrease Prepare the operating...
Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended...
Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,516,000 Cost of goods sold 742,840 Gross profit 773,160 Operating expenses Salaries expense $ 207,692 Depreciation expense 36,384 Rent expense 40,932 Amortization expenses—Patents 4,548 Utilities expense 16,676 306,232 466,928 Gain on sale of equipment 6,064 Net income $ 472,992 Accounts receivable $ 31,050 increase Accounts payable $ 8,625 decrease Inventory 24,225 increase Salaries payable 4,700 decrease Prepare the operating activities...
Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended...
Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,516,000 Cost of goods sold 742,840 Gross profit 773,160 Operating expenses Salaries expense $ 207,692 Depreciation expense 36,384 Rent expense 40,932 Amortization expenses—Patents 4,548 Utilities expense 16,676 306,232 466,928 Gain on sale of equipment 6,064 Net income $ 472,992 Accounts receivable $ 31,050 increase Accounts payable $ 8,625 decrease Inventory 24,225 increase Salaries payable 4,700 decrease Prepare the operating activities...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $2,408,000 Cost of goods sold 1,179,920 Gross profit 1,228,080 Operating expenses Salaries expense $329,896 Depreciation expense 57,792 Rent expense 65,016 Amortization expenses–Patents 7,224 Utilities expense 26,488 486,416 741,664 Gain on sale of equipment 9,632 Net income $751,296 Changes in current asset and current liability accounts for the year that relate to operations...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2015   Sales $ 2,172,000   Cost of goods sold 1,064,280   Gross profit 1,107,720   Operating expenses       Salaries expense $ 297,564       Depreciation expense 52,128       Rent expense 58,644       Amortization expenses—Patents 6,516       Utilities expense 23,892 438,744 668,976   Gain on sale of equipment 8,688   Net income $ 677,664 Changes in current asset and current liability accounts for the year that...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,443,000 Cost of goods sold 1,197,070 Gross profit 1,245,930 Operating expenses Salaries expense $ 334,691 Depreciation expense 58,632 Rent expense 65,961 Amortization expenses–Patents 7,329 Utilities expense 26,873 493,486 752,444 Gain on sale of equipment 9,772 Net income $ 762,216 Changes in current asset and current liability accounts for the year that...
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information...
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 1,828,000 Cost of goods sold 991,000 Gross profit 837,000 Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses–Patents 4,200 Utilities expense 18,125 361,660 475,340 Gain on sale of equipment 6,200 Net income $ 481,540 Changes in...
Problem 17-05A Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For...
Problem 17-05A Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $972,000 Operating expenses, excluding depreciation $624,500 Depreciation expense 54,600 Loss on disposal of plant assets 24,100 703,200 Income before income taxes 268,800 Income tax expense 40,100 Net income $228,700 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $74,400 $61,000 Accounts payable 40,300 27,000 Income taxes payable 12,900 6,400...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2015 Sales $ 1,521,000 Cost of goods sold 745,290 Gross profit 775,710 Operating expenses Salaries expense $ 208,377 Depreciation expense 36,504 Rent expense 41,067 Amortization expenses—Patents 4,563 Utilities expense 16,731 307,242 468,468 Gain on sale of equipment 6,084 Net income $ 474,552 Changes in current asset and current liability accounts for the year that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT