Given the Following Information, Indicate the Cash Flow Amounts in the Blanks

question 16

Essay

Given the following information, indicate the cash flow amounts in the blanks provided.(Note that the ABCCompany uses a just-in-time inventory system and there is no beginning or ending inventory).
$\begin{array}{llcc}\text {ABC Company}\\\text {Income Statement}\\\text {For the Year Ended December 31, Year 2}\\&&\underline{\text { Cash Flow }}\\ \text {Sales revenue, \( 75 \% \) on credit } &\$200,000&\$\underline{\quad\quad}\\ \text { Accounts receivable balance } &\\ \text { December 31, Year 1, \( \$ 50,000 \)} &\\ \text { December 31, Year 2, \( \$ 60,000 \) } &\\ \text {Cost of good sold. \( 100 \% \) on credit } &\$60,000&\$\underline{\quad\quad}\\ \text {Accounts payable balance } &\\ \text {December 31, Year \( 1, \$ 15,000 \) } &\\ \text {December 31 , Year \( 2, \$ 12,000 \) } &\\ \text { Expenses:} &\\ \text { Salaries and Wages } &\$26,000&\$\underline{\quad\quad}\\ \text { Accrued wages payable balance } &\\ \text { December 31, Year 1, \( \$ 1,500 \) } &\\ \text {December 31, Year 2, \( \$ 1,600 \) } &\\ \text { Depreciation expense} &\$2,500&\$\underline{\quad\quad}\\ \text { Rent expense } &\$1,500&\$\underline{\quad\quad}\\ \text {No accruals } &\\ \text {Income tax expense } &\underline{\$5,500}&\$\underline{\quad\quad}\\ \text {Taxes payable balance } &\\ \text { December 31, Year 1, \( \$ 1,000 \)} &\\ \text { December 31 , Year \( 2, \$ 2,000 \) } &\\ \text {Total expenses } &\underline{\$35,500}\\ \text {Net income } &&\underline{\$104,500}\\ \text { Cash flow from operating activities} &&\$\underline{\quad\quad}\\\end{array}$

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