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                $\begin{array}{ll}13.000 & 2,000\end{array}$

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