Given the Following Information for Kings Company, Prepare the Operating

question 180

Essay

Given the following information for Kings Company, prepare the operating activities section on the statement of cash flows using the direct method as of December 31, 20X5. $\begin{array}{ll}\text { Sales }&&\$891,000\\\text { Less expenses: }\\\text { Cost of goods sold } & \$ 662,000 \\\text { Depreciation expens e } & 16,000 \\\text { Amortixation expense } & 3,000 \\\text { Wage expense } & 91,000 \\\text { Rent expense } & 4,000 \\\text { Loss on sale of fixed asset } & 2,000 \\\text { Interest expense } & 13,000 \\\text { Income tax expense } & \underline{38,000}\\&&829,000\\\text { Net income }&&\$62,000\end{array}$ Increases (decreases) in selected accounts are indicated below: $\begin{array}{l}\text { Cash }&\$2,800&\text { Accounts pay able }&\$2,400\\\text { Accounts }&9,200&\text { Wages payable }&(700)\\\text { receivable }\\\text { Inventory } & (5,900) & \text { Taxes payable } & 1,100 \\\text { Prep aid rent } & (300) & &\end{array}$

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Definitions:

Leader-member Exchange Theory

A leadership theory that focuses on the quality of the relationship between leaders and followers, emphasizing that differing types of relationships within a team can affect its dynamics and productivity.

In-group Members

Individuals who belong to and identify with a particular group, often perceiving themselves as distinct or superior to out-group members.

Organizational Commitment

The psychological attachment and loyalty an employee feels towards their organization, often reflected in their willingness to remain with the organization and go above and beyond in their job roles.

Path-goal Theory

A leadership theory that suggests a leader's behavior is effective when employees perceive it as a source of satisfaction or as paving the way to future satisfaction.