The following financial statements were drawn from the records of
The following financial statements were drawn from the records of Matrix Shoes:
Income Statement
For the Year Ended December 31, 2017
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 direct method.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help