Colorful Cat Company Uses the Direct Method to Prepare ItsPrepare the Operating Activities Section of the Statement of Cash

The Answer of Colorful Cat Company Uses the Direct Method to Prepare ItsPrepare the Operating Activities Section of the Statement of Cash

Colorful Cat Company Uses the Direct Method to Prepare ItsPrepare the Operating Activities Section of the Statement of Cash

The Answer of Colorful Cat Company Uses the Direct Method to Prepare ItsPrepare the Operating Activities Section of the Statement of Cash

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Colorful Cat Company Uses the Direct Method to Prepare Its

question 85

Essay

Colorful Cat Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ending December 31,2017:
$Colorful Cat Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ending December 31,2017: \begin{array}{c} \text {Colorful Cat Company }\\ \text {Income Statement}\\ \text {Year Ended December 31, 2017}\\\begin{array}{|l|r|l|} \hline & 2017 & 2016 \\ \hline \text { Sales Revenue } & \$ 289,400 & \\ \hline \text { Interest Revenue } & 2,900 & \\ \hline \text { Gain on Sale of Plant Assets } & 6,000 & \\ \hline \text { Total Revenues and Gains } & & \$ 298,300 \\ \hline \text { Cost of Goods Sold } & 146,100 \\ \hline \text { Salaries and Wages Expense } & 49,700 \\ \hline \text { Depreciation Expense - Plant Assets } & 16,000 \\ \hline \text { Other Operating Expense } & 23,200 \\ \hline \text { Interest Expense } & 3,500 \\ \hline \text { Income Tax Expense } & \text { 7,800 } \\ \hline \text { Total Expenses } & & 246,300 \\ \hline \text { Net Income } & & \$ 52,000 \\ \hline \end{array}\end{array} \begin{array} {c } \text { Colorful Cat Company } \\ \text { Statement of Retzined Earnings } \\ \text { Year Ended December 31, 2017 }\\ { \begin{array} { |l | r| } \hline \text { Retained Earnings, January 1, 2017 } & \$ 78,000 \\ \hline \text { Add: Net income } & 52,000 \\ \hline \text { Less: Dividends } & \underline { 15,000 } \\ \hline \text { Retained Earnings, December 31,2017 } & \$ 115,000 \\ \hline \end{array} } \end{array} Prepare the operating activities section of the statement of cash flows,using the direct method.$ $\begin{array}{c}\text {Colorful Cat Company }\\\text {Income Statement}\\ \text {Year Ended December 31, 2017}\\\begin{array}{|l|r|l|}\hline & 2017 & 2016 \\\hline \text { Sales Revenue } & \$ 289,400 & \\\hline \text { Interest Revenue } & 2,900 & \\\hline \text { Gain on Sale of Plant Assets } & 6,000 & \\\hline \text { Total Revenues and Gains } & & \$ 298,300 \\\hline \text { Cost of Goods Sold } & 146,100 \\\hline \text { Salaries and Wages Expense } & 49,700 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 23,200 \\\hline \text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & \text { 7,800 } \\\hline \text { Total Expenses } & & 246,300 \\\hline \text { Net Income } & & \$ 52,000 \\\hline\end{array}\end{array}$
$\begin{array} {c } \text { Colorful Cat Company } \\\text { Statement of Retzined Earnings } \\\text { Year Ended December 31, 2017 }\\ { \begin{array} { |l | r| } \hline \text { Retained Earnings, January 1, 2017 } & \$ 78,000 \\\hline \text { Add: Net income } & 52,000 \\\hline \text { Less: Dividends } & \underline { 15,000 } \\\hline \text { Retained Earnings, December 31,2017 } & \$ 115,000 \\\hline\end{array} } \end{array}$ Prepare the operating activities section of the statement of cash flows,using the direct method.

Definitions:

Peritubular Capillaries

Tiny blood vessels that surround the tubules in the kidney, involved in reabsorption and secretion during urine formation.

Efferent Arteriole

A small blood vessel that leads away from the glomerulus of the kidney after filtration has occurred, playing a role in regulating blood pressure and filtration rate.

Cortical Radiate Vein

Veins within the kidney that transport blood away from the nephrons.

Transitional Epithelium

A type of epithelial tissue that can stretch and change shape, found mainly in the urinary system.