During the year, Makenzie Company earned a net income of $36,150. Beginning and ending balances for the

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During the year, Makenzie Company earned a net income of $36,150. Beginning and ending balances for the year for selected accounts are as follows:

There were no financing or investing activities for the year. The above balances reflect all of the adjustments needed to adjust net income to operating cash flows.

Required:
Prepare a schedule of operating cash flows by using the indirectmethod.

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Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

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Question Posted: Feb 03, 2012 07:08 AM

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During the year, Makenzie Company earned a net income of $36,150. Beginning and ending balances for the

Question:

Acco unt Balance Beginning Ending Cash Accounts receivable Inventory Prepaid expenses Accumulated depreciation Accounts payable Wages payable $72,000 45,000 24,000 18,000 54,000 30,000 18,000 $90,000 64,500 33,900 12,000 61,000 36,750 12,000

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Cash flows from operating activities Operating net income 36150 Add ...View the full answer

Cornerstones of Managerial Accounting

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