- The following data has been taken from the Shine Machinery Inc., income statement and balance sheet:
Dec. 31, Jan. 2012 Jan. 1, 2013
Income statement:
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . … . .$375,000
Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 115,000
Amortization of Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000
Gain on Sale of Plant Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ….. 91,000
Loss on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. . 34,000
Balance sheet:
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …$345,000 $380,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …513,000 575,000
Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ……23,000 10,000
Accounts Payable (to merchandise suppliers) . . . . . . . . . . . . . . . . …. 389,000 410,000
Accrued Expenses Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. ..170,000 155,000”
Required:
Use the above information for the preparation of net cash flow from the operating activities through the indirect method for the following year ended 31, December 2013.”
