20. Presented below is the income statement of Gregg, Inc.:
In addition, the following information related to net CHANGES in
working capital is presented:
Cash $ 12,000
Trade accounts receivable (net) 10,000
Salaries payable (operating expenses) 8,000
Trade accounts payable 9,000
Income tax payable 3,000
Prepare a schedule computing the net cash flow from operating
activities that would be shown on a statement of cash flows:
(a) using the indirect method.
(b) using the direct method.
In Excel format, the solutions presents the net cash flows from operating activities in two formats.