Sales Revenue Less Cost Of Goods Sold Additional Data Ignoring Taxes 1 Net Income For The Year Was 42 500 2 Cash 1 (138.47 KiB) Viewed 37 times
Sales Revenue Less Cost Of Goods Sold Additional Data Ignoring Taxes 1 Net Income For The Year Was 42 500 2 Cash 2 (50.92 KiB) Viewed 37 times
Sales revenue Less: Cost of goods sold Additional data (ignoring taxes): 1. Net income for the year was $42,500. 2. Cash dividends declared and paid during the year were $21,125. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $25,000 were sold during the year for $28,750. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200. Marcus's 2020 income statement follows (ignoring taxes). $269,750 Gross margin Less: Operating expenses (includes $8,625 depreciation and $5,400 bad debts) Income from operations Other: Gain on sale of investments Loss on sale of machinery Net income $238,750 $3,750 (800) $540,000 380,000 160,000 120,450 39,550 2,950 $ 42,500
Instructions a. Compute net cash flow from operating activities using the direct method. b. Prepare a statement of cash flows using the indirect method. ark (SCF-Direct and Indirect Methods from Comparative Financi tes several sto
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