Problem 15 Supp - 1 Cash Flows from Operating Activities: Direct Method

Tanucci Clothing Store's income statement follows.

Tanucci Clothing Store
Income Statement
For the Year Ended June 30, 2014
Net sales			$4,900,000
Cost of goods sold:
Beginning inventory	$1,240,000
Net cost of purchases	3,040,000
Goods available for sale	$4,280,000
Ending inventory	1,400,000
Cost of goods sold			2,880,000
Gross margin			$2,020,000
Operating expenses:
Sales and administrative salaries expense	$1,112,000
Other sales and administrative expenses	624,000
Total operating expenses			1,736,000
Income before income taxes			$ 284,000
Income taxes			78,000
Net income			$ 206,000

Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000, accounts payable increased by $228,000, and income taxes payable decreased by $14,400. PLEASE ANSWER EVERYTHING IN THE SECOND PICTURE.