Below Is the 2015 Income Statement for the Critters Corporation

question 24

Essay

Below is the 2015 income statement for the Critters Corporation. Critters Corporation
Income Statement
For the Year Ended December 31, 2015
$\begin{array}{lc}\text { Net sales } && \$ 100,000 \\\text { Cost of goods sold } && \underline{(40,000)} \\\text { Gross profit on sales } && \$ 60,000\\\text { Various operating expenses } & \$ 25,000 \\\text { Depreciation expense } & 5,000 \\\text { Interest expense } & 2,000 \\\text { Income tax expense } & 4,000&(36,000)\\\text { Net income }&&\$24,000\end{array}$ Additional Information:
Accounts receivable increased by $8,000.
Merchandise inventory increased by $4,000.
Accounts payable increased by $6,000.
Prepaid expenses decreased by $2,000.
Accrued liabilities decreased by $5,000.
Interest payable increased by $1,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Faxing

The transmission of scanned printed material (both text and images) over a telephone line to a printer or other output device.

Verbal Report

An oral communication of information between individuals, often used in healthcare settings.

Oncoming Nurse

A nurse who is about to begin their shift and take over patient care responsibilities.

Heparin

An anticoagulant medication used to prevent and treat blood clots.