The following schedule relates the income statement with cash flows from operating activities, deriv
The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The amounts for income statement elements are missing. Cash Flows from Operating Activities Income Statement Indirect Method Direct Method Net income Adjustments: Sales $? Decrease in accounts receivable 10 Cash received from customers $ 600 Cost of goods sold ? Increase in inventory (20) Decrease in accounts payable (33) Cash paid to suppliers (407) ase in salaries payable 11 Cash paid to employees (36) Depreciation expense ? Depreciation expense 17 (Not reported-no cash effect) Insurance expense ? Decrease in prepaid insurance 18 Cash paid for insurance (14) Loss on sale of land ? Loss on sale of land 14 (Not reported-no cash effect) Income tax expense ? Increase in income tax payable 14_Cash paid for income taxes (34) Net income $? Net cash flows from operating activities $109 Net cash flows from operating activities $ 109 Required: Deduce the missing amounts and prepare the income statement. Income Statement