The company reported net income this year as follows: 

                                                                            

Sales					$	2,000,000
Cost of goods sold						1,300,000
Gross margin						700,000
Selling and administrative expenses						490,000
Net operating income						210,000
Nonoperating items:
Gain on sale of investments	$	60,000
Loss on sale of equipment		(20,000	)			40,000
Income before taxes						250,000
Income taxes						80,000
Net income					$	170,000

 

Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)

Answer rating: 100% (QA)

To prepare a statement of cash flows using the indirect method based on the provided net income info... View the full answer