Calculations Shown

B-13.06 -08 Bonds at par, premium and discount – straight line amortization
No Ch 15 HW

Preparing the operating section of the statement of cash flows – indirect
Gainesville Corporation’s income statement revealed sales of $700,000; gross profit of $300,000; selling and administrative costs of $140,000; and income taxes of $45,000.  The selling and administrative expenses included $10,000 for depreciation.  The company’s operating activities generated positive cash flow of $129,000.  Use the “indirect”  approach to demonstrate how this amount was calculated.  The following additional information is available: