Use the following information to determine this company’s cash flows from operating activities using the indirect method.
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LING COMPANY Selected Balance Sheet Information December 31,2011 and 2010 |
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2011 |
2010 |
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Current assets |
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Cash |
$338,600 |
$107,200 |
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Accounts receivable |
100,000 |
128,000 |
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Inventory Current liabilities |
240,000 |
216,400 |
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Accounts payable Income taxes payable |
121,600 8,200 |
102,800 8,800 |
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LING COMAPANY Income Statement For Year Ended December 31,2011 |
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Sales |
$2,060,000 |
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Cost of goods sold |
1,326,400 |
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Gross profit |
733,600 |
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Operating expenses |
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Depreciation expense |
$144,000 |
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Other expenses |
486,000 |
630,000 |
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Income before taxes |
103,600 |
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Income taxes expense |
30,800 |
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Net income |
$ 72,800 |
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