Computing cash provided by operations from accrual information
Income statement and balance sheet excerpts of Shevlin and Liberty for the period ending December 31, 2012, follow. Compute cash provided (used) by operating activities for the period ending December 31, 2012. Use both the direct and indirect forms of presentation.
|
Sales |
$48,000 |
|
|
Cost of goods sold |
30,000 |
|
|
Cross profit |
$18,000 |
|
|
Wage expense |
$4,000 |
|
|
Advertising expense |
1,000 |
|
|
Depreciation expense |
2,000 |
7,000 |
|
Nel income |
$11,000 |
|
BALANCE SHEET EXCERPTS |
2012 |
2011 |
|
Accounts receivable |
$4,000 |
$5,000 |
|
Deferred revenues |
0 |
3,000 |
|
Inventory |
9,000 |
11,000 |
|
Accounts payable |
3,000 |
4,000 |
|
Wages payable |
1,800 |
900 |
|
Prepaid advertising |
3,000 |
1,200 |
|
Accumulated depreciation |
5,000 |
3,000 |