Acc280 Financial Accounting: E14-5 The condensed single-step income statement (Sunderland)

Acc280 Financial Accounting

E14-5 Cash flows from operating activities: indirect method
The condensed single-step income statement for the year ended December 31, 20x9 of Sunderland Chemical Company a distributor of farm fertilizers and herbicides, appears as follows:
Sales 13,000,000
Less: Cost of goods sold 7,600,000
Operating Expenses (incldg depreciation of $820,000) 3,800,000
Income Tax expense 400,000 11,800,000
Net Income $1,200,000

Selected accounting from Sunderland Chemical Company's balance sheets for 20x9 and 20x8 as follows:
20x9 20x8
Accounts receivable 2,400,000 1,700,000
Inventory 840,000 1,020,000
Prepaid expenses 260,000 180,000
Accounts payable 960,000 720,000
Accrued liabilities 60,000 100,000
Income taxes payable 140,000 120,000

Present in good form a schedule of cash flows from operating activities using the indirect method.
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