Problem tyra companys 2011 income statement and selected


Question: Refer to the information in Problem.

Required: Prepare the cash flows from operating activities section only of the company's 2011 statement of cash flows using the direct method.

Problem: Tyra Company's 2011 income statement and selected balance sheet data at December 31, 2010 and 2011, follow ($ thousands).

TYRA COMPANY

Income Statement

For Year Ended December 31, 2011

Sales revenue . . . . . . . . . . . . . . . . . . $412,000
Expenses

Cost of goods sold . . . . . . . . . . . 244,000

Depreciation expense . . . . . . . . . 64,000

Salaries expense . . . . . . . . . . . . . 30,000

Rent expense . . . . . . . . . . . . . . . 20,000

Insurance expense . . . . . . . . . . . 5,200

Interest expense . . . . . . . . . . . . . 4,800

Utilities expense . . . . . . . . . . . . . 4,000

Net income . . . . . . . . . . . . . . . . . . . $ 40,000

TYRA COMPANY

Selected Balance Sheet Accounts

At December 31                        2011                  2010

Accounts receivable . . . . . . . . $820                   $700

Inventory . . . . . . . . . . . . . . . . . 272                  296

Accounts payable . . . . . . . . . . 480                     520

Salaries payable . . . . . . . . . . . . 280                   220

Utilities payable . . . . . . . . . . . . 40                        0

Prepaid insurance . . . . . . . . . . 28                         36

Prepaid rent . . . . . . . . . . . . . . 40                        60

Required: Prepare the cash flows from operating activities section only of the company's 2011 statement of cash flows using the indirect method.

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Accounting Basics: Problem tyra companys 2011 income statement and selected
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