Westhoff, Incorporated provided the following balance sheets and income statement for the current year. Prepare the operating

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Westhoff, Incorporated provided the following balance sheets and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Assume accrued expenses relate to selling, general and administrative expenses. All acquisitions of property, plant and equipment were made using cash.

                        Westhoff, Incorporated

                            Income Statement

                For the Year Ended December 31

Sales……………………………………………………..      $ 80,085

Cost of Goods Sold……………………………………..      48,051

Gross Profit………………………………………………     $ 32,034

Selling, General, and Administrative Expenses…………      $ 10,700

Depreciation Expense……………………………………     2,400

Total Operating Expenses………………………………..     $ 13,100

Income before Interest and Taxes……………………….     $ 18,934

Interest Expense…………………………………………     $ (4,000)

Interest Revenue………………………………………....     3,400

Income before Tax……………………………………….     $ 18,334

Income Tax Expense……………………………………..     (7,334)

Net Income………………………………………………      $ 11,000
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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