direct method using the following income statement and cash flow adjustment informat 691893
Direct Method
Using the following income statement and cash flow adjustment information, prepare the operating cash flow section of the statement of cash flows using the direct method.
|
Sales |
$4,000 |
|
Cost of goods sold |
1,700 |
|
Interest expense |
350 |
|
Depreciation expense |
800 |
|
Net income |
$1,150 |
Adjustments:
(a) Interest payable decreased by $60.
(b) Accounts receivable decreased by $290.
(c) Inventory increased by $500.
(d) Accounts payable decreased by $130.