CULLUMBER LTD.
Income Statement
Year Ended December 31, 2024
Sales
$805,800
Cost of goods sold
416,500
Gross profit
389,300
Operating expenses
$263,500
Depreciation expense
42,500
Profit from operations
306,000
Other revenues and expenses
83,300
Gain on sale of equipment
8,500
Profit before income tax
91,800
Income tax expense
25,500
Profit for the year
$66,300
Changes in current assets and current liabilities were as follows:
Accounts receivable
$30,600 decrease
Inventory
16,150 increase
Prepaid expenses
1,700 increase
Accounts payable
10,200 decrease
Dividends payable
4,250 decrease
Income tax payable
3,400 decrease
Prepare the operating activities section of the cash flow statement using the direct method. (Show amounts that
decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
CULLUMBER LTD.
Cash Flow Statement (Partial)-Direct Method
Year Ended December 31, 2024
Operating Activities
Cash Receipts from Customers
Net Cash Provided by Operating Activities
