Question

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2011 fiscal year was $624,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:
Decrease in accounts receivable .. 22,000
Increase in inventories ....... 9,200
Increase prepaid expenses ..... 8,500
Increase in salaries payable .... 10,000
Decrease in income taxes payable . 14,000

Required:
Prepare the operating activities section of the 2011 statement of cash flows.



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  • CreatedJune 24, 2013
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