The income statement for the year ended December 31, 2014, for Kosinski Company contains the following condensed
Question:
The income statement for the year ended December 31, 2014, for Kosinski Company contains the following condensed information.
Instructions Prepare the statement of cash flows using the indirect method.
Transcribed Image Text:
Kosinski Company Income Statement For the Year Ended December 31, 2014 Sales revenue Operating expenses (excluding depreciation) $4,920,000 Depreciation expense 880,000 Income before income taxes Income tax expense Net income Included in operating expenses is a $24,000 loss resulting from the sale of machinery for $270,000 cash. Machinery was purchased at a cost of $750,000. The following balances are reported on Kosinski's comparative balance sheets at December 31. Kosinski Company Comparative Balance Sheets (partial) 2014 Cash $672,000 Accounts receivable 775,000 834,000 521,000 Inventory Accounts payable $6,583,000 5,800,000 783,000 353,000 $ 430,000 2013 $130,000 610,000 867,000 501,000 Income tax expense of $353,000 represents the amount paid in 2014. Dividends declared and paid in 2014 totaled $200,000.
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Related Book For
Financial And Managerial Accounting
ISBN: 9781118004234
1st Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
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