Portions of the financial statements for Hawkeye Company are provided below. Required: 1. Prepare the cash flows
Question:
Portions of the financial statements for Hawkeye Company are provided below.
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method.
2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method.
Transcribed Image Text:
HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $900 Cost of goods sold 350 Gross margin Operating expenses: 550 Salaries $232 Depreciation 190 Loss on sale of land 12 Total operating expenses 434 Operating income Other income (expense): Gain on sale of cash equivalents Interest expense 116 4 (40) Income before tax 80 Income tax expense 40 Net income $ 40
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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