Question

The following financial statements were drawn from the records of Matrix Shoes:


Income Statement
For the Year Ended December 31, 2014
Sales revenue ........ $300,000
Cost of goods sold ..... (144,000)
Gross margin ......... 156,000
Operating expenses
Salary expense ........ (88,000)
Depreciation expense ..... (9,800)
Utilities expense ....... (6,400)
Operating income ...... 51,800
Non-operating items
Interest expense ....... (2,400)
Loss on the sale of equipment ... (800)
Net income ......... $ 48,600

Additional Information
1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash.
2. Paid a $7,200 cash dividend to owners.

Required
Analyze the data and prepare a statement of cash flows using the directmethod.


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  • CreatedOctober 12, 2013
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