An income statement for the first year of operations for Patti Company appears below: Sales $ 390,000 Dividend revenue 39,000 Interest revenue 24,050 Cost...

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Finance

An income statement for the first year of operations for PattiCompany appears below:
Sales $ 390,000
Dividend revenue 39,000
Interest revenue 24,050
Cost of goods sold (208,000 )
Salary expense (26,000 )
Depreciation expense (70,200 )
Income tax expense (109,200 )
Net income $ 39,650
Additional information:
Accounts payable, end of year, $13,000.
Salaries payable, end of year, $8,450.
Inventories, end of year, $26,000.
Accounts receivable, end of year, $32,500.
Required:
Use the direct approach to calculate the cash provided (used) byoperating activities for Patti Company. (Net cash outflowsand amounts to be deducted should be indicated by a minussign.)

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3.6 Ratings (319 Votes)

Under direct approach cash actually paid or received is calculated note 1 Cash received from sales will be Sales Balance of accounts receivable 39000032500 357500 2 See Answer

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An income statement for the first year of operations for PattiCompany appears below:Sales$390,000Dividend revenue39,000Interest revenue24,050Cost of goods sold(208,000)Salary expense(26,000)Depreciation expense(70,200)Income tax expense(109,200)Net income$39,650Additional information:Accounts payable, end of year, $13,000.Salaries payable, end of year, $8,450.Inventories, end of year, $26,000.Accounts receivable, end of year, $32,500.Required:Use the direct approach to calculate the cash provided (used) byoperating activities for Patti Company. (Net cash outflowsand amounts to be deducted should be indicated by a minussign.)


Sales	$	390,000
Dividend revenue		39,000
Interest revenue		24,050
Cost of goods sold		(208,000	)
Salary expense		(26,000	)
Depreciation expense		(70,200	)
Income tax expense		(109,200	)
Net income	$	39,650