Ask Question
12 November, 10:05

Sales revenue $6,800 Cost of goods sold 4,700 Gross margin 2,100 Selling and administrative expenses 910 Income from operations 1,190 Other revenues and gains Gain on sale of investments 80 Income before tax 1,270 Income tax expense 550 Net income 720 Cash dividends 260 Income retained in business $460 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the indirect method.

+4
Answers (1)
  1. 12 November, 11:54
    0
    Cash flows by the indirect method, start from the net income to which all extraordinary costs and expenses are reversed to know the operating profit, then the investments made are added and the financing sources are shown to reach the final change in cash flow

    Explanation:

    Statement of cash flows ($)

    Net income 720

    + Other revenues and gains Gain on sale of investments 80

    + Income tax expense 550

    Cashflows from operation activities 1350

    + Plants assets 70

    Cashflows from investing activities 70

    - Cash dividends 260

    - Common Stocks

    Cashflows of the year = 1090
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sales revenue $6,800 Cost of goods sold 4,700 Gross margin 2,100 Selling and administrative expenses 910 Income from operations 1,190 Other ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers