Use Amulis Corp's Income Statement and Balance Sheet Information to Calculate

question 53

Essay

Use Amulis Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the:(a)Direct Method (b)Indirect Method
Amulis Corp.
Income Statement
For the Year Ended December 31, 2021
$\begin{array}{|l|r|r|}\hline & \mathbf{2 0 2 1} & \mathbf{2 0 2 0} \\\hline \text { Sales (all on credit) } & & \$ 227,000 \\\hline \text { Cost of goods sold } & & 70,000 \\\hline \text { Gross profit from sales } & & 157,000 \\\hline \text { Depreciation expense } & 6,000 \\\hline \text { Other operating expenses } & 108,000 \\\hline \text { Income tax expense } & 22,200 &136,200\\\hline \text { Operating income } & & \$ 20,800 \\\hline \text { Gain on sale of equipment } & & 8,100 \\\hline \text { Profit } & & \$ 28,900\\\hline\end{array}$ $\begin{array}{|l|r|r|}\hline & \mathbf{2 0 2 1} & \mathbf{2 0 2 0} \\\hline \text { Cash } & 25,000 & 23,400 \\\hline \text { Accounts receivable } & 62,000 & 67,000 \\\hline \text { Merchandise inventory } & 193,000 & 181,000 \\\hline \text { Long-term investments } & 25,000 & 4,000 \\\hline \text { Equipment } & 452,000 & 412,00 \\\hline \text { Accumulated depreciation, equipment } & 233,000 & 189,000\\\hline&524,000&498,400\\\hline\\\hline \text { Accounts payable } & 27,200 & 22,000 \\\hline \text { Income taxes payable } & 1,800 & 7,800 \\\hline \text { Bonds Payable } & 8,000 & 11,000 \\\hline \text { Common shares } & 221,000 & 252,000 \\\hline \text { Retained earnings } & 266,000 & 205,600 \\\hline & 524,000 & 498,400 \\\hline\end{array}$ Calculate net cash provided by operating activities under the indirect and direct methods

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