DIVIBION OF GLOBAL COMMERCE DEPARTMENT OF INTERNATIONAL BUSI

DIVIBION OF GLOBAL COMMERCE, DEPARTMENT OF INTERNATIONAL BUSINESS Student No. Name Aster Company\'s 2015 income statement and changes in selocted stitemest of financial position accounts are given below, Calculaie the company\'s net esh fom or ussd n sing he direset inethos The cooporny alas eperienced the fallaing during 20 Cest af goods sold pmie 344 890 Net Pro ANS Cash flows frore opering actie iics Far Year Endad Dlocersber 31, 201s Cash paid for achandise inventory Cash poid fe operaling esperses Cash paid for incona tasues Csh fromsed in operating activities

Solution

Cash flow direct method 1 Sales 268000 Increase in accounts receivable -4000 Cash collected from customer 264000 Less Expenses 2 Cost of goods sold 136000 Decrease in inventory -14000 Increase in accounts payable -16000 Cash paid for merchandise inventory 106000 3 Operating expense 78000 Decrease in prepaid insurance -10000 Cash paid for operating expense 68000 4 Income tax expense 13300 Increase in income tax payable -300 Paid for income taxes 13000 Cash flow from operating activities 77000