Use the following income statement and information about changes in non - cash current assets and current
Question:
Use the following income statement and information about changes in noncash current assets and current liabilities to present the cash flows from operating activities using the direct method: List any deduction in cash and cash outflows as negative amounts.
Opal Resources Corp. Income Statement
For Year Ended December
Sales $
Cost of goods sold
Gross profit from sales $
Operating expenses:
Salaries expense $
Depreciation expense
Rent expense
Amortization expense, patents
Utilities expense
Total operating expenses
Gain on sale of equipment
Profit from operations $
Income taxes
Profit $
Changes in current asset and current liability accounts during the year were as follows:
Accounts receivable $ increase
Merchandise inventory increase
Accounts payable decrease
Salaries payable decrease
Analysis Component:
Use the information above to present the cash flows from operating activities using the indirect method.