Question: Use the following information to compute operating cash flows using the indirect method. Swasey Company Partial Comparative Balance Sheets At December 31, 20X1 and 20X2

Use the following information to compute operating cash flows using the indirect method.

Swasey Company Partial Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 2 Current Assets 3 Accounts receivable 1,500,000.00 1,165,000.00 4 Inventories 600,000.00 640,000.00 5 Current liabilities 6 Wages payable 1,400,000.00 1,030,000.00 Swasey Company Income Statement For the Year Ended December 31, 20X2 1 Revenues 6,000,000.00 2 Gain on sale of equipment 200,000.00 3 Cost of goods sold (3,840,000.00) 4 Depreciation expense (540,000.00) 5 Interest expense (20,000.00) 6 Net income $1,800,000.00 Required: Compute operating cash flows using the indirect method

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