Cash Flows from Operating Activities (Indirect method)
Net income
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation expense
Increase in accounts receivable
Decrease in inventory
Increase in prepaid rent
Decrease in accounts payable
Decrease in income tax payable
Net cash flows from operating activities
Cash Flows from Operating Activities (Direct method)
Cash received from customers
Cash paid to suppliers
Cash paid for operating expenses
Cash paid for income taxes
Net cash flows from operating activities
Net sales
Expenses:
REVERSE LOGIC
Income Statement
For the Year Ended December 31, 2021
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
Required:
Complete the following income statement for Reverse Logic. Assume all accounts payable are to suppliers. (Enter your answers in
thousands (.e., 10,000,000 should be entered as "10,000).)
58
S
1701
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58
(34)
46
(4)
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9
$ 4,050
(2,505)
(1,158)
(94)
$213
$213