The following information was taken from the comparative financial statements of Imperial Corporation for the years ended December 31, 2002 and 2003:
|
Net income for 2003 |
$ 90,000 |
|
Sales revenue |
500,000 |
|
Cost of goods sold |
300,000 |
|
Depreciation expense for 2003 |
60,000 |
|
Amortization of goodwill for 2003 |
10,000 |
|
Interest expense on short term debt for 2003. |
3,500 |
|
Dividends declared and paid in 2003 |
65,000 |
|
Dec. 31, 2003 |
Dec. 31, 2002 |
|
|
Accounts receivable (net) |
$30,000 |
$43,000 |
|
Inventory |
50,000 |
42,000 |
|
Accounts payable |
56,000 |
59,400 |
Use the direct method to compute cash flows provided by operating activities in 2003. (HINT: You need to calculate cash paid for operating expenses.)