Comparative balance sheet accounts of Carla Company are presented below. CARLA COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS...

Comparative balance sheet accounts of Carla Company are presented below.

CARLA COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31
Debit Balances	2020	2019
Cash	$69,900	$50,600
Accounts Receivable	154,800	130,300
Inventory	75,700	61,400
Debt investments (available-for-sale)	55,100	84,600
Equipment	69,300	48,400
Buildings	145,700	145,700
Land	40,200	25,200
Totals	$610,700	$546,200

Credit Balances
Allowance for Doubtful Accounts	$10,100	$7,900
Accumulated Depreciation—Equipment	21,000	14,000
Accumulated Depreciation—Buildings	36,800	28,100
Accounts Payable	65,600	59,500
Income Taxes Payable	12,000	10,100
Long-Term Notes Payable	62,000	70,000
Common Stock	310,000	260,000
Retained Earnings	93,200	96,600
Totals	$610,700	$546,200

Additional data:

1.		Equipment that cost $10,100 and was 60% depreciated was sold in 2020.
2.		Cash dividends were declared and paid during the year.
3.		Common stock was issued in exchange for land.
4.		Investments that cost $35,100 were sold during the year.
5.		There were no write-offs of uncollectible accounts during the year.

Carla’s 2020 income statement is as follows.

Sales revenue			$943,500
Less: Cost of goods sold			595,900
Gross profit			347,600
Less: Operating expenses (includes depreciation expense and bad debt expense)			247,500
Income from operations			100,100
Other revenues and expenses
Gain on sale of investments	$14,900
Loss on sale of equipment	(3,000	)	11,900
Income before taxes			112,000
Income taxes			45,500
Net income			$66,500

(a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net cash flow from operating activities

$

(b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Expert Solution

Notes:

Be careful while reading amounts from image (with commas)
If you still have any diubt, feel free to ask in comment section.

ekkarill92 answered 3 years ago

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