Problem 21-10 Relationship between the income statement and cash flows from operating activities (direct method and indirect method) [LO21-3, 21-4]

The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. Some elements necessary to complete the schedule are missing.

The account with no title is either : Increase or Decrease in Salaries Payable

Problem 21-10 Relationship between the income statement and cash flows from operating activities (direct method and indirect method) [LO21-3, 21-4] The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. Some elements necessary to complete the schedule are missing Required: Complete the schedule by determining each of the following missing elements: (Amounts to be deducted should be indicated with a minus sign.) Cash flows from Operating Activities Indirect Method Income Statement Direct Method Net income Adjustments Sales S 388 Decrease in accounts receivable 14 Cash received from customers (32) (Not reported-no cash effect) (20) Gain on sale of equipment 32 Gain on sale of equipment Increase in inventory Increase in accounts payable Cost of goods sold Salaries expense Depreciation expense Interest expense Insurance expense Loss on sale of land Income tax expense Net Income 26 Cash paid to suppliers 14 Cash paid to employees 17 (Not reported-no cash effect) 4 Cash paid for interest 17 Cash paid for insurance 14 (Notr (182) (44) 17 Depreciation expense (17) Decrease in bond discount (37) Decrease in prepaid insurance (14) Loss on sale of land (43) Increase in income tax payable 251 Net cash flows from operating activities ho cash effect) Cash paid for income taxes (29) $ 110 S S 110 Net cash flows from operating activities