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Following Are the Income Statement and Other Information for Polk

Question 125

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Following are the income statement and other information for Polk Corporation.
 Polk Corporation Income Statement For the Year Ended December 31, 20xx Sales $6,000 Cost of goods sold 3,000 Gross margin $3,000 Operating expenses $1,200 Depreciation expense 6001,800Income before income taxes$1,200 Income taxes expense300 Net income$900\begin{array}{c}\text { Polk Corporation}\\\text { Income Statement}\\\text { For the Year Ended December 31, 20xx}\\\begin{array}{|lrr|}\hline\text { Sales } && \$ 6,000 \\\text { Cost of goods sold } && 3,000 \\\text { Gross margin } && \$ 3,000\\\text { Operating expenses } & \$ 1,200 \\\text { Depreciation expense } &\underline{ 600 }&\underline{1,800}\\\text {Income before income taxes}&&\$1,200\\\text { Income taxes expense}&&\underline{300}\\\text { Net income}&&\underline{\$900}\\\hline\end{array}\end{array} Accounts receivable (net)decreased by $1,500 during the year.Inventory increased by $900,and Accounts Payable decreased by $1,200 during the year.Income Taxes Payable increased by $300 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 Polk Corporation.   \begin{array}{c} \text { Polk Corporation}\\ \text {  Income Statement}\\ \text {  For the Year Ended December 31, 20xx}\\\begin{array}{|lrr|} \hline\text { Sales } && \$ 6,000 \\ \text { Cost of goods sold } && 3,000 \\ \text { Gross margin } && \$ 3,000\\ \text { Operating expenses } & \$ 1,200 \\ \text { Depreciation expense } &\underline{ 600 }&\underline{1,800}\\ \text {Income before income taxes}&&\$1,200\\ \text { Income taxes expense}&&\underline{300}\\ \text { Net income}&&\underline{\$900}\\ \hline \end{array}\end{array}  Accounts receivable (net)decreased by $1,500 during the year.Inventory increased by $900,and Accounts Payable decreased by $1,200 during the year.Income Taxes Payable increased by $300 during the year. Prepare a schedule of cash flows from operating activities using the indirect method.

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