Data for Percival Company are presented as:
|
PERCIVAL COMPANY |
||
|
Sales |
$5,400,000 |
|
|
Cost of goods sold |
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|
Beginning inventory |
$1,780,000 |
|
|
Purchases |
3,430,000 |
|
|
Goods available for sale |
5,210,000 |
|
|
Ending inventory |
1,920,000 |
|
|
Total cost of goods sold |
3,290,000 |
|
|
Gross profit |
2,110,000 |
|
|
Operating expenses |
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|
Selling expenses |
420,000 |
|
|
Administrative expense |
525,000 |
|
|
Depreciation expense |
105,000 |
|
|
Amortization expense |
20,000 |
1,070,000 |
|
Net income |
$1,040,000 |
|
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.