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:

Advance Directives

Legal documents that allow individuals to outline their preferences for medical treatment and care should they become unable to communicate their wishes.

Nonmaleficence

A core principle in medical ethics that means to do no harm to patients.

Beneficence

The ethical principle that obliges healthcare professionals to act in the best interest of their patients, promoting good and preventing harm.

Autonomy

The right or condition of self-governance; in healthcare, it refers to a patient's right to make informed decisions about their own medical treatment.