Prepare a complete accrual-basis income statement

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Reference no: EM132462471

Problem - The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders. Inc.:

Collections from customers

$28,000

Payments to suppliers for purchases

(13,000)

Payments for operating expenses

(9,000)

Payments for income taxes

(4,000)

Cash provided by operating activities

2,000

The following information is obtained from the income statement of Battery Builders:

Net income

$4,000

Depreciation expense

4,000

Gain on sale of equipment

2,000

Write-off of intangibles

1,000

In addition, the following information is obtained from the comparative balance sheets of Battery Builders (decreases in parentheses):

Change in accounts receivable

$3,000

Change in inventory

3,000

Change in accounts payable

2,000

Change in accrued payable (related to operating expense)

(2,000)

Change in deferred taxes payable

1,000

Required - Prepare a complete accrual-basis income statement for the current year.

Reference no: EM132462471

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