Given the Following Information for Kings Company, Prepare the Operating

Essay

Given the following information for Kings Company, prepare the operating activities section on the statement of cash flows using the direct method as of December 31, 20X5. $\begin{array}{ll}\text { Sales }&&\$891,000\\\text { Less expenses: }\\\text { Cost of goods sold } & \$ 662,000 \\\text { Depreciation expens e } & 16,000 \\\text { Amortixation expense } & 3,000 \\\text { Wage expense } & 91,000 \\\text { Rent expense } & 4,000 \\\text { Loss on sale of fixed asset } & 2,000 \\\text { Interest expense } & 13,000 \\\text { Income tax expense } & \underline{38,000}\\&&829,000\\\text { Net income }&&\$62,000\end{array}$ Increases (decreases) in selected accounts are indicated below: $\begin{array}{l}\text { Cash }&\$2,800&\text { Accounts pay able }&\$2,400\\\text { Accounts }&9,200&\text { Wages payable }&(700)\\\text { receivable }\\\text { Inventory } & (5,900) & \text { Taxes payable } & 1,100 \\\text { Prep aid rent } & (300) & &\end{array}$