Davis Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute
Question:
Davis Company provided the following partial comparative balance sheets and the income statement for 20X2.
Required:
Compute operating cash flows using the indirect method.
Transcribed Image Text:
Davis Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 Current assets: Accounts receivable Inventories Current liabilities: Wages payable Revenues Cost of goods sold $750,000 300,000 Davis Company Income Statement For the Year Ended December 31, 20X2 Gross margin Operating expenses Depreciation Operating income Other revenues and expenses Gain on sale of equipment Interest expense Net income 700,000 100,000 10,000 20X2 $582,500 320,000 515,000 $3,000,000 1,920,000 $1,080,000 270,000 $ 810,000 90,000 $ 900,000
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Managerial Accounting The Cornerstone Of Business Decision Making
ISBN: 9780357715345
8th Edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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