Refer to the information presented for King Corp. in P17-7B.

Additional information:
1. Net sales for the year were $927,250.
2. Cost of goods sold for the year was $552,750.
3. Operating expenses, including depreciation expense, were $241,000.
4. Interest revenue was $3,500.
5. Interest expense was $6,500.
6. Income tax expense was $48,000.
7. Accounts payable relate to merchandise purchases and accrued expenses payable relate to operating expenses.
Instructions
Prepare a cash flow statement for the year using the direct method.
TAKING IT FURTHER
Indicate what transactions might be classified differently if the company were reporting under IFRS instead of ASPE.

Transcribed Image Text:

KING CORP Balance Sheet July 31 2 Accounts receivable 4 Accumulated depreciation Liabilities and Shareholders' E 1 2 Income taxes payable Total liabilities and shareholders' equity