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Following Are the Income Statement and Other Information for Knox

Question 126

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Following are the income statement and other information for Knox Corporation.
 Knox Corporation  Income Statement  For the Year Ended December 31,20xx Sales $3,000 Cost of goods sold 1,500 Gross margin $1,500 Operating expenses $600 Depreciation expense 300900Income before income taxes$600Income taxes expense150Net income$450\begin{array}{c}\text { Knox Corporation }\\\text { Income Statement }\\\text { For the Year Ended December \( 31,20 x x \)}\\\begin{array}{lc}\text { Sales } && \$ 3,000 \\\text { Cost of goods sold }& & 1,500 \\\text { Gross margin } && \$ 1,500\\\text { Operating expenses } & \$ 600 \\\text { Depreciation expense } & 300&900\\\text {Income before income taxes}&&\$600\\\text {Income taxes expense}&&150\\\text {Net income}&&\$450\end{array}\end{array}
Accounts receivable (net)decreased by $750 during the year.Inventory increased by $450,and Accounts Payable decreased by $600 during the year.Income Taxes Payable increased by $150 during the year.
Prepare a schedule of cash flows from operating activities using the indirect method.
 Following are the income statement and other information for Knox Corporation.   \begin{array}{c} \text { Knox Corporation }\\ \text { Income Statement }\\ \text { For the Year Ended December  31,20 x x }\\ \begin{array}{lc} \text { Sales } && \$ 3,000 \\ \text { Cost of goods sold }& & 1,500 \\ \text { Gross margin } && \$ 1,500\\ \text { Operating expenses } & \$ 600 \\ \text { Depreciation expense } & 300&900\\ \text {Income before income taxes}&&\$600\\ \text {Income taxes expense}&&150\\ \text {Net income}&&\$450 \end{array}\end{array}   Accounts receivable (net)decreased by $750 during the year.Inventory increased by $450,and Accounts Payable decreased by $600 during the year.Income Taxes Payable increased by $150 during the year. Prepare a schedule of cash flows from operating activities using the indirect method.

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