Question

Cash Flow form Operating Activities (Indirect Method)

For the following two independent cases, show the cash flow from operating activities section of the 2010 statement of cash flow using the indirect method.

Case A

Case B

2010

2009

2010

2009

Sales Revenue

$10,000

$9,000

$21,000

$18,000

Cost of Goods Sold

6,000

5,500

12,000

11,000

Gross Profit

4,000

3,500

9,000

7,000

Depreciation Expense

1,000

1,000

2,000

1,500

Salaries Expense

2,500

2,000

5,000

5,000

Net Income

500

500

2,000

500

Accounts Receivable

300

400

750

600

Inventories

600

500

790

800

Accounts Payable

800

700

800

850

Salaries Payable

1,000

1,200

200

250

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