In: Accounting
The two independent cases are listed below: |
Case A |
Case B |
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Year 2 | Year 1 | Year 2 | Year 1 | |||||
Sales Revenue | $ | 11,200 | $ | 9,200 | $ | 22,000 | $ | 18,200 |
Cost of Goods Sold | 6,100 | 5,600 | 12,400 | 11,100 | ||||
Gross Profit | 5,100 | 3,600 | 9,600 | 7,100 | ||||
Depreciation Expense | 1,020 | 1,020 | 1,520 | 1,520 | ||||
Salaries and Wages Expense | 2,600 | 2,020 | 5,200 | 5,020 | ||||
Net Income | 1,480 | 560 | 2,880 | 560 | ||||
Accounts Receivable | 310 | 410 | 760 | 610 | ||||
Inventory | 760 | 510 | 750 | 810 | ||||
Accounts Payable | 820 | 720 | 810 | 870 | ||||
Salaries and Wages Payable | 1,200 | 1,220 | 210 | 260 | ||||
Compute the net cash flow from operating activities section of the Year 2 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) |
Case A
Cash Flow Statement | |||
Direct Method | |||
Cash flow from Operating Activities | |||
Cash Collected from customers | $ 11,300 | =11200+410-310 | |
Total Cash Inflows | $ 11,300 | ||
Cash paid to Suppliers | $ -6,250 | =-(6100+720-820+760-510) | |
Cash paid for Salaries | $ -2,620 | =-(2600+1220-1200) | |
Total Cash Outflows | $ -8,870 | ||
Cash from operating activities | $ 2,430 |
Case B
Cash Flow Statement | |||
Direct Method | |||
Cash flow from Operating Activities | |||
Cash Collected from customers | $ 21,850 | =22000+610-760 | |
Total Cash Inflows | $ 21,850 | ||
Cash paid to Suppliers | $ -12,400 | =-(12400+870-810+750-810) | |
Cash paid for Salaries | $ -5,250 | =-(5200+260-210) | |
Total Cash Outflows | $ -17,650 | ||
Cash from operating activities | $ 4,200 |