Refer to the information in Problem 12-7B.
Problem 12-7B
SALT LAKE COMPANY
Income Statement
For Year Ended December 31, 2013
Sales revenue . . . . . . . . . . . . . . . . . . $156,000
Expenses
Cost of goods sold . ........ . . . . . . . . . 72,000
Depreciation expense . . . ....... . . . . . 32,000
Salaries expense . . . . . . . . . . . ....... . 20,000
Rent expense . . . . . . . . . . . . .......... . . 5,000
Insurance expense . . . . . . . ......... . . . 2,600
Interest expense . . . .......... . . . . . . . . . 2,400
Utilities expense . . . . ......... . . . . . . . . 2,000
Net income . . . . . . . . . . . . . ... . . . . . $ 20,000

Required
Prepare the cash flows from operating activities section only of the company's 2013 statement of cash flows using the direct method.

Transcribed Image Text:

SALT LAKE COMPANY Selected Balance Sheet Accounts At December 31 2013 2012 Accounts receivable $3,600 $3.000 Inventory . 860 980 Accounts payable .... Salaries payable Utilities payable 2,400 2,600 900 600 200 Prepaid insurance Prepaid rent 140 180 100 200