The net income reported on the income statement for the current year was $93,700. Depreciation recorded on
Question:
a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.
b. Briefly explain why net cash flow from operating activities is different than net income.
Transcribed Image Text:
End of Year Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable $24,100 65,000 47,200 3,250 23,400 5,300 $19,700 56,000 50,000 8,000 17,200 6,400
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a Net income 93700 Adjustments to reconcile net income to net cash flow from operating activities D...View the full answer
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Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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