Data Table Income Statement Year Ended September 30 2016 sh

Data Table Income Statement Year Ended September 30, 2016 sh Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 230,000 96,000 134,000 Salaries Expense Depreciation Expense -Plant Assets Total Operating Expenses $57,000 23,000 Net Income Before Income Taxes Income Tax Expense Net Income 80,000 54,000 11,000 $43,000 Print Done

Solution

cash flow statement (indirect method)

Cash flow from operating activities

Net income 43000

Add: Depreciation- plant 23000

   66000

Decrease in accounts receivable 9000

increase in inventory (6000)

increase in accounts payable 9000

decrease in accrued liabilities (5000)

Net Cash provided by operating activities 73000

Cash flow from investing activities

sale of land 29000

purchase of plant (115000)

Net Cash used by investing activities (86000)

Cash flow from financing activities

dividend paid (13000)

proceed from issuing common stock 35000

prcoeed from notes payable 1000

Net Cash provided by financing activities 23000

Net increase in cash 10000

Add: cash at beginning 27000

   Cash at end 37000

Non cash investing and financing activities $0