【正文】 er operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Sales 1,180,000 Receivables 9,000 Cash 1,171,000 Changes Cash collected from customers The increase in receivables represents a reduction in cash inflow relative to the accrual revenue reported on the ine statement. C14 44 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cost of mdse. sold 790,000 Inventories 8,000 Accounts payable 3,200 Cash Changes Cash payments for merchandise C14 45 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 785,200 Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cost of mdse. sold 790,000 Inventories 8,000 Accounts payable 3,200 Cash 785,200 Changes Cash payments for merchandise C14 46 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 785,200 Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cost of mdse. sold 790,000 Inventories 8,000 Accounts payable 3,200 Cash 785,200 Changes Cash payments for merchandise A decrease in inventories (credit change) and an decrease in accounts payable (debit change) have the opposite effects. C14 47 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Depr. expense 7,000 Accum. depreciation 7,000 Changes Depreciation C14 48 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Depr. expense 7,000 Accum. depreciation 7,000 Changes Depreciation There is no cash flow for depreciation expense. C14 49 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Changes Debit Credit Operating expenses 196,000Accrued expenses 2,200 Cash Changes Cash payments for operating expenses C14 50 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Changes Debit Credit Operating expenses 196,000Accrued expenses 2,200 Cash 193,800 Changes Cash payments for operating expenses C14 51 Rundell Inc. Ine Statement For the Year Ended December 31, 2023 Cash Basis Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Ine from operations $187,000 Other ine: Gain on sale of land $12,000 0 Other expense: Interest expense 8,000 4,000 Ine before ine tax $ 191,000 Ine tax 83,000 Net ine $ 108,000 Debit Credit Cash 72,000 Investment