Question

Cash flows from operating activities (indirect and direct methods).
Presented below is the income statement of Smiling Tiger, Inc.
Sales ............... $1,020,000
Cost of goods sold .......... 640,000
Gross profit ............ $380,000
Operating expenses ......... 230,000
Income before income taxes ....... 150,000
Income taxes ............ 60,000
Net income ............ $90,000
In addition, the following information related to net changes in working capital is presented.


Depreciation expense for the year was $54,000
Deferred tax liability account increased $6,500
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows:
Using the indirectmethod


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  • CreatedJuly 26, 2013
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