1.
Cash flows from operating activities for both the indirect and direct methods are presented for
Reverse Logic. All amounts are in thousands (000s). Complete the following income statement
for Reverse Logic. Assume all accounts payable are to suppliers. (Enter your answers in
thousands.)
Solution
Net Sales (4070+38)Â Â -------------------------------------------------- 4108
Expenses:-
--Cost of Goods Sold [(2585-11) + 50] ----2624
--Operating Expenses (1163-5) -------------1158
--Depreciation Expense   ----------------------- 62
--Income tax expense (99-9) ------------------ 90
------------------------Total Expense --------------------------------------3934
.
Net Profit ------------------------------------------------------------------- 174