the income statement of country kitchen bakeries inc for the current year ended june 646147
The income statement of Country Kitchen Bakeries Inc. for the current year ended June 30 is as follows:
|
Sales |
|
$456,000 |
|
Cost of merchandise sold |
|
259,000 |
|
Gross profit |
|
$197,000 |
|
Operating expenses: |
|
|
|
Depreciation expense |
$35,000 |
|
|
Other operating expenses |
92,400 |
|
|
Total operating expenses |
|
127,400 |
|
Income before income tax |
|
$ 69,600 |
|
Income tax expense |
|
19,300 |
|
Net income |
|
$ 50,300 |
Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:
|
|
Increase |
|
|
Decrease* |
|
Accounts receivable (net) |
$10,500* |
|
Inventories |
3,500 |
|
Prepaid expenses |
3,400* |
|
Accounts payable (merchandise creditors) |
7,200* |
|
Accrued expenses (operating expenses) |
1,100 |
|
Income tax payable |
2,400* |
Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method.