Question

Martin, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method.


MARTIN, INC. Income Statement For Year Ended December 31, 2013
Sales $248,000
Cost of goods sold 116,000
Gross profit $132,000
Operating expenses:
Wages and salaries expense $ 44,000
Rent expense 16,000
Depreciation expense 30,000
Other operating expenses 18,000 108,000
Income from operations $ 24,000
Gain on sale of equipment 26,000
Income before income taxes $ 50,000
Income taxes expense 17,500
Net income $ 32,500

Additional information:


Increase in accounts receivable $ 4,000
Increase in accounts payable 16,000
Increase in income taxes payable 300
Decrease in prepaid expenses 10,000
Decrease in merchandise inventory 14,000
Decrease in long-term notes payable 20,000

Answer

This answer is hidden. It contains 990 characters.