Presented below is the income statement of Debra, Inc.: Sales revenue $380,000 Cost of goods sold 222,000 Gross profit $158,000 Operating expenses 94,100 Income before income taxes 63,900 Income taxes 22,900 Net income $ 41,000 In addition, the following information related to netchanges in working capital is presented: Debit Credit Cash $11,800 Accounts receivable 24,300 Inventories $19,700 Salaries payable (operating expenses) 8,400 Accounts payable 14,100 Income taxes payable 3,100 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,900. Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.

Presented below is the income statement of Debra, Inc.: Sales revenue $380,000 Cost of goods sold 222,000 Gross profit $158,000 Operating expenses 94,100 Income before income taxes 63,900 Income taxes...

Presented below is the income statement of Debra, Inc.:

In addition, the following information related to netchanges in working capital is presented:

	Debit	Credit
Cash	$11,800
Accounts receivable	24,300
Inventories		$19,700
Salaries payable (operating expenses)	8,400
Accounts payable		14,100
Income taxes payable	3,100

The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,900.

Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows:

(a) using the indirect method.

(b) using the direct method.

Jun 03, 2022