E9-6A. Calculate cash from operating activities. (LO 3, 4)
Use the information given for Evans Company to calculate
a. Cash paid for salaries
b. Cash paid for income taxes
c. Cash paid for inventory items
d. Cash collected from customers
e. Cash proceeds from stock issue
From the Financial Statements for Evans Company
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Balance Sheet |
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Income Statement |
Beginning |
End |
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Sales revenue |
$ 85,600 |
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Accounts receivable |
$ 8,700 |
$ 10,000 |
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Salary expense |
21, 400 |
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Salaries payable |
2,300 |
2,100 |
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Cost of goods sold |
24,300 |
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Inventory |
4,800 |
8,000 |
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Accounts payable |
2,500 |
3,000 |
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Income tax expense |
28,500 |
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Income taxes payable |
7,400 |
8,500 |
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Common stock and additional |
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paid-in capital |
N/A |
630,000 |
718,000 |
Prepare the cash from operating activities section of the statement of cash flows and determine the method used. (LO 2, 4, 6)
Use the information from E9-6A to calculate the cash flow from operations for Evans Company.
Based on the information provided, which method of preparing the statement of cash flows does Evans use