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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
E22-5      Direct and Indirect Methods  The Dauve Company reported the following condensed income statement for  2007:
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Sales |
 |
 |
$100,000 |
Cost of goods sold |
 |
 |
(58,000) |
Gross profit Operating expenses Depreciation expense |
  $ 8,000 |
 |
$ 42,000 |
Salaries expense |
12,000 |
 |
(20,000) |
Income before income taxes |
 |
 |
$ 22,000 |
Income tax expense |
 |
 |
(6,600) |
Net income |
 |
 |
$ 15,400 |
During 2007, the following changes occurred in the company’s current assets and current liabilities:
Cash |
$3,700 |
Accounts receivable |
(5,500) |
Inventories |
8,900 |
Accounts payable (purchases) |
(4,600) |
Salaries payable |
2,800 |
1.     By visual inspection, prepare the net cash flow from operating activities section of the Dauve Company’s 2007 statement of cash flows using the indirect method.
2.     By visual inspection, prepare the net cash flow from operating activities section of the Dauve Company’s 2007 statement of cash flows using the direct method.
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