Use the Following Selected Data About Tiles Ltd

question 54

Essay

Use the following selected data about Tiles Ltd. and prepare the operating activities section of a statement of cash flows for the company for 2005 using the indirect method. $\begin{array}{rr}\begin{array}{l}\text{Balance Sheet Data}\\\hline\text{Accounts receivable}\\\text{Inventories}\\\text{Accounts payable}\\\text{Salaries payable}\\\text{Equipment}\\\text{Accumulated depreciation}\\\text{Bonds payable}\\\text{Common stock}\\\text{Retained eamings}\\\end{array}\begin{array}{rr}2005 & 2004 \\\hline\$ 36,000 & \$ 42,000 \\28,000 & 25,000 \\31,000 & 35,000 \\2,000 & 1,000 \\60,000 & 40,000 \\12,000 & 16,000 \\50,000 & 100,000 \\150,000 & 100,000 \\38,000 & 20,000\\\end{array}\end{array}$
$$\begin{array} { | l | r | } \hline \text { Income Statement Data } & 2005 \\\hline \text { Net sales } & \$ 420,000 \\\hline \text { Cost of goods sold } & 300,000 \\\hline \text { Operating expenses (excluding depreciation expense) } & 84,000 \\\hline \text { Net income } & 30,000 \\\hline \text { Gain on sale of equipment (included in net income above) } & 2,000 \\\hline\end{array}$$

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Definitions:

Pickup Truck

A light motor vehicle with an open-top rear cargo area (bed), typically used for transporting goods.

Negatively Correlated

Refers to two variables which move in opposite directions; when one variable increases, the other decreases, and vice versa.

Variables

Elements, features, or factors that are likely to vary or change and can be measured, controlled, or manipulated in experiments or models.

Opposite Directions

Refers to two lines or paths that diverge from each other, heading in completely different trajectories.