Dakota Telescopes Company Uses the Indirect Method to Prepare the Statement

question 125

Essay

Dakota Telescopes Company uses the indirect method to prepare the statement of cash flows.Refer to the following income statement:
Dakota Telescopes Company
Income Statement
Year Ended December 31, 2019 $\begin{array}{l}\text { Sales Revenue } & \$ 275,000 \\\text { Interest Revenue } & \underline{2,600}\\\text { Total Revenues }&&\$277,600\\\text { Cost of Goods Sold } & 135,000 \\\text { Salary Expense } & 66,500 \\\text { Depreciation Expense } & 32,000 \\\text { Other Operating Expenses } & 35,900\\\text { Interest Expense } & 2,400 \\\text { Income Tax Expense } & 6,500 \\\text { Loss on Sale of Plant Assets } & \underline{2,000} \\\text { Total Expenses and Losses } & &{280,300}\\\text { Net Loss }&&{(\$ 2,700)} \end{array}$ Additional information provided by the company includes the following:
Current assets other than cash decreased by $25,000.
Current liabilities increased by $3,000.
Prepare the operating activities section of the statement of cash flows.

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