Preparing the Operating Activities Section of the Statement of Cash Flows
Anakin, Inc., provides the following account balances for 2008 and 2007:
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Dec 31, 2008 |
Dec 31, 2007 |
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Accounts Receivable |
$ 18,700 |
$15,500 |
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Inventory |
25,440 |
27,200 |
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Accounts Payable |
21,650 |
22,400 |
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Salaries Payable |
1,500 |
1,350 |
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Sales |
278,700 |
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Cost of Goods Sold |
197,000 |
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Depreciation Expense |
16,700 |
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Salaries Expense |
35,200 |
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Other Expenses |
24,300 |
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Using the format presented in the chapter, prepare the Operating Activities section of the statement of cash flows and present that information using (a) the direct method and (b) the indirect method.