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

question 72

Essay

Use Aplec 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
Aplec Corp.
Income Statement
For the Year Ended December 31, 2021
$\begin{array}{|l|r|r|}\hline \text { Sales (all on credit) } & & \$ 70,000 \\\hline \text { Cost of goods sold } & & 22,000 \\\hline \text { Gross profit from sales } & & 48,000 \\\hline \text { Depreciation expense } & 1,400 & \\\hline \text { Salaries and wages } & 10,500 \\\hline \text { Rent expense } & 2,200 \\\hline \text { Interest expense } & 680&14,780 \\\hline \text { Operating income } & & 33,220 \\\hline \text { Gain on sale of equipment } & & 4,000 \\\hline \text { Profit } & & 37,220\\\hline\end{array}$ Aplec Corp.
Balance Sheet
December 31,
$\begin{array}{|l|r|r|}\hline & \mathbf{2 0 2 1} & \mathbf{2 0 2 0} \\\hline \text { Cash } & 142,200 & 56,980 \\\hline \text { Accounts receivable } & 4,600 & 1,000 \\\hline \text { Merchandise inventory } & 11,200 & 14,200 \\\hline \text { Long-term investments } & 101,000 & 112,800 \\\hline \text { Equipment } & 254,000 & 200,000 \\\hline \text { Accumulated depreciation, equipment } & 39,756 & 28,356 \\\hline & 473,244 & 356,624 \\\hline\\\hline \text { Accounts payable } &6,000 &6,800 \\\hline \text { Salaries and wages payable } & 1,400 & 1,200 \\\hline \text { Bonds Payable } & 49,000 & 63,000 \\\hline \text { Common shares } & 196,000 & 100,000 \\\hline \text { Retained earnings } & 220,844 & 185,624 \\\hline & 473,244 & 356,624\\\hline\end{array}$

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