The Income Statement and a Partial Balance Sheet of Hart

question 133

Essay

The income statement and a partial balance sheet of Hart Alloy Company for the year ended December 31, 2018 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Accrued Liabilities relate to miscellaneous operating expenses.
Hart Alloy Company
Income Statement
For the Year Ended December 31, 2018 $$\begin{array} { l l } \text { Sales Revenues } & \$ 1,500,000 \\\text { Cost of Goods Sold } & \underline{1,170,000 }\\\text { Gross Profit } & \$ 330,000\end{array}$$ Operating Expenses:
$\begin{array}{lrr} \text { Salaries Expense } &\$210,000\\ \text { Depreciation Expense } &60,000\\ \text { Miscellaneous Expenses} &\underline{30,000}&\underline{300,000}\\ \text { Net Income } &&\underline{\$30,000}\\\end{array}$
$\begin{array}{c}\text { Hart Alloy Company}\\ \text { Partial Balance Sheet}\\ \text { December 31, 2018 and 2017}\\\begin{array}{lll}&2018&2017\\\text { Cash } & \$ 240,000 & \$ 195,000 \\\text { Accounts Receivable (net) } & 150,000 & 150,000 \\\text { Inventories } & 306,000 & 258,000 \\\text { Accrued Liabilities } & 13,500 & 15,000 \\\text { Accounts Payable (Merchandise Inventory) } & 174,000 & 153,000 \\\text { Salaries Payable } & 22,500 & 18,000\end{array}\end{array}$

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Definitions:

DSM

Diagnostic and Statistical Manual of Mental Disorders; a manual published by the American Psychiatric Association that categorizes and defines mental disorders.

Overdiagnosis

The diagnosis of a disease or condition that is unlikely to cause harm during a person's lifetime, leading to unnecessary treatment and anxiety.

Diagnostic Labels

Terms or phrases used by healthcare professionals to identify and classify mental health disorders or medical conditions.

Cognitive Explanations

Theories or accounts that explain human behavior and mental processes in terms of how people understand, think about, and interpret the world around them.