Beta Companys accountants just completed the income statement and balance sheet for the year and have provided
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The company issued $20,000, 8 percent bonds payable during the year.
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.
2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirectmethod.
Transcribed Image Text:
INCOME STATEMENT $19.800 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense Interest expense on bonds Loss on sale of investments Net loss $9,030 2,900 5,070 2.800 900 720 600 650 22,670 $ (2,870) SELECTED BALANCE SHEETACCOUNTS 2010 2011 S 84 440 245 31 4 4 17 Merchandise invent Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance 65 530 212 23 ory
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