Data for the Vince Gill Company are presented in E23.3.

Instructions

Prepare the operating activities section of the statement of cash flows using the direct method.

Transcribed Image Text:

Vince Gill Company Income Statement For the Year Ended December 31, 2020 Sales revenue $6,900,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Cost of goods sold 4,700,000 Gross profit Operating expenses Selling expenses Administrative expenses 2,200,000 450,000 700,000 1,150,000 Net income $1,050,000