Below are the balance sheet and income statement for Anderson Corporation.

Additional Information

1. In Year 1, Anderson sold machinery bought at $36, for $18, resulting in a $2 gain on income statement.
2. $810 in dividends were paid in Year 1.
3. SG&A expense includes $50 of interest expense, and amortization expense of $30.
4. Cost of good sold includes depreciation of $260.
5. Income tax expense includes deferred tax liability of $20.

a. Prepare cash flows from operations using the direct method.
b. Prepare statement of cash flows from operations using the Indirect method.

Question

Below are the balance sheet and income statement for Anderson Corporation.

Additional Information

1. In Year 1, Anderson sold machinery bought at $36, for $18, resulting in a $2 gain on income statement.
2. $810 in dividends were paid in Year 1.
3. SG&A expense includes $50 of interest expense, and amortization expense of $30.
4. Cost of good sold includes depreciation of $260.
5. Income tax expense includes deferred tax liability of $20.

a. Prepare cash flows from operations using the direct method.
b. Prepare statement of cash flows from operations using the Indirect method.

Quizplus · Accepted Answer

The Answer of Below are the balance sheet and income statement for Anderson Corporation.

Additional Information

1. In Year 1, Anderson sold machinery bought at $36, for $18, resulting in a $2 gain on income statement.
2. $810 in dividends were paid in Year 1.
3. SG&A expense includes $50 of interest expense, and amortization expense of $30.
4. Cost of good sold includes depreciation of $260.
5. Income tax expense includes deferred tax liability of $20.

a. Prepare cash flows from operations using the direct method.
b. Prepare statement of cash flows from operations using the Indirect method.

Below Are the Balance Sheet and Income Statement for Anderson