Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Selected Balance Sheet Data

Question:

Portions of the financial statements for Alliance Technologies are provided below.

ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $405,000 Expenses: $235,000 70,000 17,000 Cost of goods sold Operating expenses Depreciation expense Income tax expense 27,000 Total expenses 349,000 $ 56,000 Net income


             ALLIANCE TECHNOLOGIES
          Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020

Decrease in accounts receivable ................... $ 7,000
Increase in inventory ........................................... 14,000
Decrease in prepaid rent ................................... 10,000
Increase in salaries payable ................................ 6,000
Decrease in accounts payable .......................... 9,000
Increase in income tax payable ..................... 24,000


Required:

Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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