PART A:

A business has the following financial information for the year:

PULLMAN COMPANY Income Statement For Year Ended December 31, 2017
Sales		$180,000
Cost of goods sold		104,000
Gross profit from sales		$76,000
Other expenses:
Salaries and wages expense	$15,000
Depreciation expense	7,000
Rent expense	3,200
Income tax expense	15,900	41,100
Net Income		$34,900

	Balance
	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable	$27,600	$24,000
Merchandise inventory	22,300	20,000
Prepaid rent	550	400
Accounts payable	27,100	26,000
Salaries and wages payable	10,400	9,000
Income taxes payable	300	250

Determine net cash flow from operating activities (be sure to show and label your work).

PART B

A Business has the following financial statement information for the year:

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MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income $875,000 600.000 $275,000 30.000 55,000 $190,000 25.000 $165,000 49,500 $115,500 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income $875,000 600.000 $275,000 30.000 55,000 $190,000 25.000 $165,000 49,500 $115,500