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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