Problem 4-3
indirect method
Profit before income tax
Depreciation exp
gain on sale of equipment
interest expense
(increase),decrease in
Decrease In A/R
Increase in inventory
Increase In prepaid insurance
increase,(decrease) in
Decrease in a/p
Increase in salaries payb
Decrease in interest payable
income tax paid
interest paid
Cash flow from operating
960000
220000
-100000
120000
120000
-280000
-180000
-160000
100000
252000
175000
373000
roblem 4-3
Direct method
Cash receipts
cash paid to suppliers
Cash paid from operating
income tax paid
interest paid
Cash flow from operating
6220000
4140000
1280000
252000
175000
373000