Question: Refer to Problem regarding Cascade Tile Prepare a supporting schedule

Refer to Problem regarding Cascade Tile. Prepare a supporting schedule that reconciles net income to net cash provided by operating activities.
In Problem, Cascade Tile is a wholesale distributor of ceramic tiles. Its cash balance on December 31, 20X0, was $226,000, and net income for 20X1 was $312,000. Its 20X1 transactions affecting income or cash follow ($ in thousands):
1. Sales of $1,500 were all on credit. Cash collections from customers were $1,390.
2. The cost of items sold was $800. Purchases of inventory on account totaled $850; inventory and accounts payable were affected accordingly.
3. Cash payments on trade accounts payable totaled $815.
4. Accrued salaries and wages: total expense, $190; cash payments, $200.
5. Depreciation was $45.
6. Interest expense, all paid in cash, was $13.
7. Other expenses, all paid in cash, totaled $100.
8. Income taxes accrued were $40; income taxes paid in cash were $35.
9. A warehouse was purchased for $435 cash.
10. Long-term debt was issued for $125 cash.
11. Cash dividends of $41 were paid.
Prepare a statement of cash flows for 20X1 using the direct method for reporting cash flows from operating activities. Omit supporting schedules.

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  • CreatedFebruary 20, 2015
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