Reporting Cash Flows from Operating Activities (Indirect Method) – The following information pertains to Satellite Company:
|
Income Statement for 2012 |
||
|
Sales |
$85,000 |
|
|
Expenses |
||
|
Cost of goods sold |
$51,875 |
|
|
Depreciation expense |
8,500 |
|
|
Salaries expense |
12,000 |
72,375 |
|
Net income |
$12,625 |
|
|
Partial Balance Sheet |
2012 |
2011 |
|
Accounts receivable |
$10,500 |
$12,000 |
|
Inventory |
14,000 |
8,000 |
|
Salaries payable |
1,750 |
800 |
Required:
Present the operating activities section of the statement of cash flows for Satellite Company using the indirect method.