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Given the Following Information, Prepare the Cash Flows from Operations

question 11

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Given the following information, prepare the cash flows from operations section of the statement of cash flows using the indirect method.
 The Wayne Corporation Income Statement For the Year Ending December 31, Year 2 Sales $500,000 Expenses:  Cost of goods sold $150,000 Depreciation expense 15,000 Salary expense35,000200,000 Net income$300,000 Additional Information:  Accounts receivable $6,000 Decrease  Merchandise inventory 12,000 Increase  Accounts payable 900 Increase  Salaries payable 600 Decrease \begin{array}{lll}\text { The Wayne Corporation}\\\text { Income Statement}\\\text { For the Year Ending December 31, Year 2}\\\text { Sales } & & \$ 500,000 \\\text { Expenses: } & & \\\text { Cost of goods sold } & \$ 150,000 & \\\text { Depreciation expense } & 15,000 &\\\text { Salary expense}&\underline{35,000}&\underline{200,000}\\\text { Net income}&&\underline{\$300,000}\\\text { Additional Information: } & & \\\text { Accounts receivable } & \$ 6,000 & \text { Decrease } \\\text { Merchandise inventory } & 12,000 & \text { Increase } \\\text { Accounts payable } & 900 & \text { Increase } \\\text { Salaries payable } & 600 & \text { Decrease }\end{array}


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