Reference no: EM132611050

The income statement and other selected data for Pat Gibson Company is shown below:

Pat Gibson Company Income Statement For the Year Ended December 31, 2019:

Net sales                           $900,000

Expenses

Cost of goods sold               (663,000)

Depreciation Expenses              (20,000)

Income before income taxes      $217,000

Income taxes (Paid)             (65,400)

Net income                          $151,600

Clarification and additional data

1. Depreciation Expense for the Year Ended December 31, 2019, $20,000.

2. Decrease in deferred income taxes (Income tax payable), $5,000.

3. Increase in accounts receivable, $20,000.

4. Increase in accounts payable, $10,000.

5. Increase in inventories, $30,000.

6. Decrease in notes payable, $20,000.

Question 1: Prepare cash flow statement for operating activities for year 2019