Refer to the partial financial statements below:
Swasey Company
Partial Comparative Balance Sheets
At December 31, 20X1 and 20X2
1. 20X1. 20X2
2 Current Assets
3 Accounts receivable. 1,500,000.00. 1,165,000.00
4 Inventories. 600,000.00. 640,000.00
5 Current liabilities
6 Wages payable. 1,400,000.00. 1,030,000.00
Swasey Company
Income Statement
For the Year Ended December 31, 20X2
1 Revenues. 6,000,000.00
2 Gain on sale of equipment. 200,000.00
3 Cost of goods sold. (3,840,000.00)
4 Depreciation expense. (540,000.00)
5 Interest expense. (20,000.00)
6 Net income. $1,800,000.00
Required:
Compute operating cash flows using the indirect method.
