Use the direct method to prepare the cash provided or used from operating activities section only of the statement of cash flows for thiscompany.

Transcribed Image Text:

ORWELL, INC. Balance Sheets December 31,2011 2011 2010 2 Cashtt.. Accounts recelvable, net Inventory Prepaid expenses Furniture Accum. depreciation Furniture000) Total assets. $95,800 25,000 52.000 96,800 5.200 110,000 20,000 (10,000) $323,000 $289,000 42,000 86,800 6,400 ORWELL, INC. Income Statement For Year Ended December 31, 2011 $468,000 Sales-.... Cost of goods sold Gross profit Operating expenses 312,000Liabilities and Equity 156,000Accounts payable 16,000 22,000 6,000 3,600 70,000 230,000 80,000 7.400 $ 35,800 Total habilties and equity$323,000 $289.000 Depreciation expense Other expenses57.000 95,600 Notes payable (long-term) Wages payable.. Income taxes payable .. 10,000 2.400 30,000 $38,600 Income before taxes Income taxes expense Net Income 60.400 Common stock, $5 par value2 24,600 Retained earnings. 34,600