Cash flows from operating activities for both the indirect and direct methods are presented for Reverse Logic. All amounts are in thousands (000s). Cash Flows from Operating Activities (Indirect method)
Net income $ 161
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation expense 49
Increase in accounts receivable (25)
Decrease in inventory 37
Increase in prepaid rent (5)
Decrease in accounts payable (19)
Decrease in income tax payable (8)
Net cash flows from operating activities $190
Cash Flows from Operating Activities (Direct method)
Cash received from customers $ 4,005
Cash paid to suppliers (2,580)
Cash paid for operating expenses (1,150)
Cash paid for income taxes (85)
Net cash flows from operating activities $190
Required:
Complete the following income statement for Reverse Logic. Assume all accounts payable are to suppliers. (Enter your answers in thousands (i. e., 10,000,000 should be entered as "10,000).)
REVERSE LOGIC
Income Statement
For the Year Ended December 31, 2018
Net sales
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense 49
Income tax expense
Total expenses
Net income $161