The income statement and account balances for Charron Inc. are presented in E17-6.

Instructions
Prepare the cash flow statement using the direct method.

Transcribed Image Text:

CHARRON INC. Comparative Balance Sheet Accounts 2017 $99,000 64,000 32,500 7,500 43,000 5,000 24,000 6,800 2016 Cash Accounts receivable Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable $105,000 41,000 46,000 5,800 36,000 8,000 17,000 11,800 CHARRON INC. Income Statement Year Ended October 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Loss on sale of equipment Profit before income taxes Income taxes Profit $625,000 390,000 235,000 $88,000 23,000 8,000 119,000 116,000 29,000 87,000