Following Are the Income Statement and Other Information for Polk

question 39

Essay

Following are the income statement and other information for Polk Corporation.
$\begin{array}{c}\text { Polk Corporation}\\\text { Income Statement}\\\text { For the Year Ended December 31, 20xx}\\\begin{array}{|lrr|}\hline\text { Sales } && \$ 6,000 \\\text { Cost of goods sold } && 3,000 \\\text { Gross margin } && \$ 3,000\\\text { Operating expenses } & \$ 1,200 \\\text { Depreciation expense } &\underline{ 600 }&\underline{1,800}\\\text {Income before income taxes}&&\$1,200\\\text { Income taxes expense}&&\underline{300}\\\text { Net income}&&\underline{\$900}\\\hline\end{array}\end{array}$ Accounts receivable (net)decreased by $1,500 during the year.Inventory increased by $900,and Accounts Payable decreased by $1,200 during the year.Income Taxes Payable increased by $300 during the year.
Prepare a schedule of cash flows from operating activities using the indirect method.

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Definitions:

Water Resources

The supply of water available for use by humans and ecosystems, including rivers, lakes, aquifers, and rainwater.

Channelization

The process of modifying the natural course of a waterway through engineering solutions to improve navigation, drainage, or flood control.

Migration And Spawning

The movement of fish or other aquatic animals to breeding grounds to reproduce.

Groundwater Moves

The natural process by which groundwater travels through soil and rock formations beneath the Earth's surface.