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Portions of the financial statements for Alliance Technologies are provided below
Portions of the financial statements for Alliance Technologies are provided below.
ALLIANCE TECHNOLOGIES
Income Statement
For the year ended December 31, 2021
Net sales $ 295,000
Expenses:
Cost of goods sold $ 175,000
Operating expenses 50,000
Depreciation expense 15,000
Income tax expense 17,000
Total expenses 257,000
Net income $ 38,000
ALLIANCE TECHNOLOGIES
Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020
Decrease in accounts receivable $ 5,000
Increase in inventory 12,000
Decrease in prepaid rent 8,000
Increase in salaries payable 4,000
Decrease in accounts payable 7,000
Increase in income tax payable 16,000
Required:
Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the direct method. (List cash
ALLIANCE TECH OLOGIES
Statement of Cash Flows (partial)
For the Year Ended December 31, 2021
Cash Flows Operating Activities 0 0
0 0
Net Cash Flows from Operating Activities 0 0
Expert Solution
| Alliance Technologies | |
| Cash flows from operating activities - Direct method | |
| For the year ended December 31, 2021 | |
| Cash flows from operating activities: | |
| Cash received from customers ($295000 + $5000) | 300000 |
| Cash paid to supplier ($175000 + $12000 + $7000) | -194000 |
| Cash paid for Income tax ($17000 - $16000) | -1000 |
| Cash paid for operating expenses ($50000 - $8000 - $4000) | -38000 |
| Net cash provided by operating activities | 67000 |
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