Portions of the financial statements for Avatar Technologies are provided below.

AVATAR TECHNOLOGIES

Income Statement

For the Year Ended December

Net sales $

Expenses:

Cost of goods sold $

Operating expenses

Depreciation expense

Income tax expense

Total expenses

Net income $

AVATAR TECHNOLOGIES

Selected Balance Sheet Data

December compared to December

Decrease in accounts receivable $

Increase in inventory

Decrease in prepaid rent

Increase in salaries payable

Decrease in accounts payable

Increase in income tax payable

Required:

Prepare the operating activities section of the statement of cash flows for Avatar Technologies using the direct method. Amounts to be deducted should be indicated with a minus sign.

Answer rating: 100% (QA)

To prepare the operating activities section of the statement of cash flows for Avatar Technologies u... View the full answer