Question

with this info i need to do a activites section of the statement of cash flows using indrect method?

Portions of the financial statements for Alliance Technologies are provided below. 301,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018 Net sales $ Expenses: Cost of goods sold be $181,000 Operating expenses 56.000 Depreciation expense Income tax expense 20,000 Total experises 272,600 Olal expenses A Net income 28,400 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017 Decrease in accounts receivable $ 5,600 Increase in inventory 12,600 Decrease in prepaid rent 8,600 Increase in salaries payable 4,600 Decrease in accounts payable 7,600 Increase in income tax payable 18.400

Answer 1

1 ALLIANCE TECHNOLOGIES Cash Flow Statement (Partial) 2 for the Year Ending 31st Dec,2018 4 Indirect Method Amount ($) 5 Particulars 6 Cash Flows From Operating Activities 7 Net Income 28,400 8 Add Income Tax 20,000 9 Income Before Tax 48,400 10 11 Adjustments to Reconcile Net Income:- 12 Add:Depreciation For the year 15,600 13 Operating Profit before working capital changes 64,000 14 Changes in Working Capital 15 Increase in Inventory 16 Decrease in Account Receivable 17 Decrease in Prepaid Rent 18 Increase in Salaries payable 19 Increase in Income Tax payable 20 Decrease in Account Payable (12,600) 5,600 8,600 4,600 18,400 (7,600) 1 Total 81,000 2 3 Less Income Tax Paid (20,000) 24 Net Cash Flow From Operating Activities 61,000 25