The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement At December
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Question:
The income statement for Piura Merchandising Corporation is as follows:
Piura Merchandising Corporation | ||
Income Statement | ||
At December 31, 2015 | ||
Sales | $ 1,450,000 | |
Less: Cost of goods sold | ||
Beginning inventory | $ 445,000 | |
Purchases | 785,000 | |
Ending inventory | (305,000) | |
(925,000) | ||
Less: Depreciation expense | (68,000) | |
Less: Amortization of patent | (16,000) | |
Less: Wages expense | (66,000) | |
Less: Insurance expense | (37,000) | |
Income before taxes | $ 338,000 | |
Less: Income taxes (all current) | (108,000) | |
Net income | $ 295,000 |
Other information is as follows:
A. | Accounts payable decreased by $18,000 during the year. |
B. | Accounts receivable increased by $18,000. |
C. | All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $14,000. |
D. | Prepaid insurance increased by $22,000 during the year. |
Prepare a schedule that provides the operating cash flows for the year using the indirect method.
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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