Dauve Company reported the following condensed income statement for 2019: During 2019, the following changes occurred in

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Dauve Company reported the following condensed income statement for 2019:

$100,000 (58,000) $ 42,000 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Salaries expen

During 2019, the following changes occurred in the company’s current assets and current liabilities:

Increase (Decrease)
Cash $ 3,700
Accounts receivable (5,500)
Inventories 8,900
Accounts payable (purchases) (4,600)
Salaries payable 2,800
Required:
1. By visual inspection, prepare the net cash flow from the operating activities section of Dauve’s 2019 statement
of cash flows using the indirect method.
2. By visual inspection, prepare the net cash flow from the operating activities section of Dauve’s 2019 statement
of cash flows using the direct method.


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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1337788281

3rd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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