The Income Statement and a Partial Balance Sheet of Hart $\begin{array}{llr} \text {Hart Alloy Company } &\\ \text {Income Statement } &\\ \text { For the Year Ended December 31, 2017} &\end{array}$

question 58

Essay

The income statement and a partial balance sheet of Hart Alloy Company for the year ended December 31,2017 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.
$\begin{array}{llr} \text {Hart Alloy Company } &\\ \text {Income Statement } &\\ \text { For the Year Ended December 31, 2017} &\end{array}$
$\begin{array}{lr}\text { Sales Revenues } & \$ 1,500,000 \\\text { Cost of Goods Sold } &\underline{ 1,170,000} \\\text { Gross Profit } & \$ 330,000\end{array}$
Operating Expenses:
$\begin{array}{ll}\text { Salaries Expense } & \$ 210,000 \\\text { Depreciation Expense } & 60,000 \\\text { Miscellaneous Expenses } & \underline{30,000} & \underline{300,000} \\\text { Net Income } & & \underline{\$30,000}\end{array}$
$\begin{array}{c}\text { Hart Alloy Company}\\\text { Partial Balance Sheet}\\\begin{array}{lll}&2017&2016\\\text { Cash } & \$ 240,000 & \$ 195,000 \\\text { Accounts Receivable (net) } & 150,000 & 150,000 \\\text { Inventories } & 306,000 & 258,000 \\\text { Accrued Liabilities } & 13,500 & 15,000 \\\text { Accounts Payable Merchandise Inventory) } & 174,000 & 153,000 \\\text { Salaries Payable } & 22,500 & 18,000\end{array}\end{array}$

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Definitions:

Contracture

The permanent tightening of muscles, tendons, skin, or other soft tissues that results in decreased mobility and possible deformity at a joint.

Sheaths

Protective coverings or cases that enclose a part or object, such as a blade or a cable.

Extensors

muscles that increase the angle between components of a limb, working to extend or straighten out the limb.

Tissue

Groups of similar cells in an organism that work together to perform specific functions.