The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods, in the format illustrated by Graphic 21-10 in the chapter. Some elements necessary to complete the schedule are missing.
Required:
Complete the schedule by determining each of the following missing elements:
1. Cash received from customers
2. Cost of goods sold
3. ? in salaries payable (Increase? or decrease?)
4. Cash paid for depreciation
5. Interest expense
6. Cash paid for insurance
7. Increase in income tax payable
8. Net income