Create the Operating Section of the Statement of Cash Flows

question 1

Essay

Create the operating section of the statement of cash flows (indirect method).
RLV Inc.
Income Statement
For the Year Ending Dec. 31,2010

$\begin{array}{lr}\text { Sales } & 250,000 \\\text { Cost of Goods Sold } &\underline{ 50,000 }\\\text { Gross Margin } & 200,000 \\\text { All Other Items: } & \\\text { Salaries Expense } & (100,000 \\\text { Depreciation Expense } & (25,000 \\\text { Gain on Sale of Equipment } & \underline{10,000} \\\text { Net Income } & \underline {8 5 , 0 0 0}\end{array}$ RLVIIC.
Balarice Sheet - Partial Staternent
Dec. 31, 2010
                                              $2010 \quad 2009$
Cash                                     $10,000 \quad 3,000$
Accounts Receivable            $20.000 \quad 15.000$
Inventory                             $\begin{array}{ll}9,000 & 13,000\end{array}$
Accounts Payable                $\begin{array}{ll}13.000 & 2,000\end{array}$

---

Definitions:

Customer Satisfaction

A measure of how products or services provided by a company meet or surpass the customer's expectations.

Controlling in Organisations

The management function concerned with monitoring activities to ensure they are being completed as planned and correcting any significant deviations.

One-Time Activities

Tasks or events that are intended to be done or occur only once within a given timeframe.

Beginning and End Points

The start and completion points in a process, project, or timeline.