| BEKHAM COMPANY Income Statement For Year Ended December 31, 2011 |
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| Sales | $ | 2,466,000 | ||||
| Cost of goods sold | 1,208,340 | |||||
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| Gross profit | 1,257,660 | |||||
| Operating expenses | ||||||
| Salaries expense | $ | 337,842 | ||||
| Depreciation expense | 59,184 | |||||
| Rent expense | 66,582 | |||||
| Amortization expenses%u2014Patents | 7,398 | |||||
| Utilities expense | 27,126 | 498,132 | ||||
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| 759,528 | ||||||
| Gain on sale of equipment | 9,864 | |||||
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| Net income | $ | 769,392 | ||||
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| Changes in current asset and current liability accounts for the year that relate to operations follow. |
| Accounts receivable | $ | 19,650 | increase | Accounts payable | $ | 12,675 | decrease |
| Merchandise inventory | 25,900 | increase | Salaries payable | 2,550 | decrease | ||
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Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company using the direct method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.) |
| Statement of Cash Flows | ||||
| Cash flows from operating activities | ||||
| (Click to select) Payments for rent Payments for salaries Payments for merchandise Payments for income taxes Payments for dividends Receipts from customers Payments for utilities | $ | |||
| (Click to select) Receipts from customers Payments for income taxes Payments for salaries Payments for rent Payments for dividends Payments for utilities Payments for merchandise | ||||
| (Click to select) Receipts from customers Payments for income taxes Payments for utilities Payments for rent Payments for merchandise Payments for salaries Payments for dividends | ||||
| (Click to select) Payments for merchandise Payments for salaries Payments for dividends Payments for income taxes Receipts from customers Payments for rent Payments for utilities | ||||
| (Click to select) Payments for utilities Payments for merchandise Payments for rent Payments for dividends Receipts from customers Payments for salaries Payments for income taxes | ||||
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| Net cash (Click to select) used in provided by operating activities | $ | |||
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