Top Brands, Inc. (TBI), presents its statement of cash flows using the indirect method. The following accounts

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Top Brands, Inc. (TBI), presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from TBI's 2012 and 2011 year-end balance sheets.

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The 2012 income statement is shown below:

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Required

a. Prepare the operating activities section of the statement of cash flows using the direct method.

b. Prepare the operating activities section of the statement of cash flows using the indirect method.

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Fundamental Financial Accounting Concepts

ISBN: 12

7th Edition

Authors: Thomas Edmonds

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Question Posted: May 19, 2024 02:01 AM

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Top Brands, Inc. (TBI), presents its statement of cash flows using the indirect method. The following accounts

Question:

Account Title 2012 2011 Accounts receivable $24,000 $26,000 Merchandise inventory 56,000 52,000 Prepaid insurance 19,000 24,000 Accounts payable 23,000 20,000 Salaries payable 4,600 4,200 Unearned service revenue 1,000 2,700

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Fundamental Financial Accounting Concepts

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