$9$:$24$

EJERCICIOS PRACTICA.docx

OK

The income statement for the year ended December $31,2024,$ is as follows:

$\backslash$table$[[$C$.$ C$.$ Conley Inc.$],[$Income Statement$],[$For the Year Ended December $31,2024],[$Sales$,,$$ $919,500],[$Cost of goods sold,,$550,000],[$Groos profit,,$369,500],[$Operating expenses:,,$],[$Depreciation expense,$ $35,000,],[$Other operating expenses,$260,000,],[$Total operating expenses,,$295,000],[$Operating income,,$74,500],[$Other revenues and gains,,$],[$Gain on sale of investments,,$10,000],[$Income before income tax,,$84,500],[$Income tax expense,,$20,000],[$Net income,,$ $64,500]]$

The following additional information was taken from Conley's records:

a$.$ The investments were sold for $$60,000$ cash at the beginning of the year.

b$.$ Equipment and land were acquired for cash

c$.$ The common stock was issued for cash.

d$.$ There was a $$35,500$ debit to Retained Earnings for cash dividend declared.

Instructions

Prepare a statement of cash flows, using indirect method of presenting cash flows from operating, investing, and financing activities.

Prepare a statement of cash flows, using direct method of presenting cash flows from operating activities.

Ejercicio de Pr$$ctica $7$

Cash Flows Statement

A comparative balance sheet and income statement for Dowling Company are as follows: