Required:(i) Prepare a cash basis income statement(ii) Prepare the cash flows from operating activities using the indirect approach. (b) Depreciation is often considered a major source of funds. Do you agree? Discuss. (a) The income statement and other selected data for Patuh Bhd is shown below.Patuh BhdAccrual Basis Income StatementFor the Year Ended December 31, 2019Net salesRM900,000ExpensesCost of goods soldSelling and administrative expenseTotal expensesIncome before income taxesIncome taxesNet income550,000133,000RM683,000217,00065,400RM151.600+Other data:1. Cost of goods sold includes depreciation expense of RM20,000.Selling and administrative expense includes goodwill amortization of RM10,000.Decrease in deferred income taxes (a liability account), RM5,000.Increase in accounts receivable, RM20,000.5. Increase in accounts payable, RM10,000.Increase in inventories, RM30,000.Decrease in income taxes payable, RM20,000.3.4.6.7.123

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(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes 550,000 133,000 RM683,000 217,000 65,400 RM151.600 Income taxes Net income + Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. 2. Selling and administrative expense includes goodwill amortization of RM10,000. 3. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. 6. 4. Increase in inventories, RM30,000. 7. Decrease in income taxes payable, RM20,000.

(a) The income statement and other selected data for Patuh Bhd is shown below. Patuh Bhd Accrual Basis Income Statement For the Year Ended December 31, 2019 Net sales RM900,000 Expenses Cost of goods sold Selling and administrative expense Total expenses Income before income taxes 550,000 133,000 RM683,000 217,000 65,400 RM151.600 Income taxes Net income + Other data: 1. Cost of goods sold includes depreciation expense of RM20,000. 2. Selling and administrative expense includes goodwill amortization of RM10,000. 3. Decrease in deferred income taxes (a liability account), RM5,000. Increase in accounts receivable, RM20,000. 5. Increase in accounts payable, RM10,000. 6. 4. Increase in inventories, RM30,000. 7. Decrease in income taxes payable, RM20,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...

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