Based on the Following Income Statement and Balance Sheet for Bankowski

question 125

Essay

Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method.
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Bankowski Corporation}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Income Statement}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {For Year Ended December 31, 20X2}$
$\begin{array} { | l | r | r | } \hline \text { Sales } & & \$ 504,000 \\\hline \text { Cost of goods sold } & \$ 327,600 & \\\hline \text { Depreciation expense } & 33,000 & \\\hline \text { Other operating expenses } & \underline { 125,500 } ( 486,100 ) \\\hline \text { Other gains (losses): } & & \\\hline \text { Gain on sale of equipment } & & \underline { 5,200 } \\\hline \text { Income before taxes } & & 23,100 \\\hline \text { Net income tax expense } & & \underline { ( 4,800 ) } \\\hline & & \\\hline\end{array}$

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to evaluate inflation or deflation.

Aggregate Output

The total quantity of goods and services produced in an economy at a given overall price level in a given period.

Aggregate Supply

The overall provision of goods and services that businesses in an economic setup aim to sell during a certain period.

Economic Expansion

A period characterized by increased business activity and growth in the economy's overall output.