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Portions of the financial statements for Alliance Technologies are provided below

Finance

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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