Using the information provided in E22-15, prepare Cuthberts current- year statement of cash flows under the direct
Question:
Using the information provided in E22-15, prepare Cuthbert’s current- year statement of cash flows under the direct reporting format.
In E22-15
Cuthbert Cookware Distributors, Inc. is a wholesale distributor of brand- name cookware products. The company’s current- year comparative balance sheets and income statement are presented below.
Cuthbert Cookware Distributors, Inc.
Income Statement
For the Year Ended December 31
Current Year
Sales Revenue……………………………………… $ 2,800,000
Cost of Goods Sold………………………………... (1,875,000)
Selling, General, and Administrative Expenses……. (885,000)
Depreciation Expense 0 Bad Debt Expense……….. (10,000)
Loss on Sale of Investments……………………….. (37,500)
Interest Expense – net……………………………… (5,000)
Loss before Tax…………………………………….. $ (12,500)
Tax at 40% 0 Net Loss……………………………... $ (12,500)Step by Step Answer:
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella