The following information pertains to Guy's Gear Company: Sales Expenses: Cost of Goods Sold Depreciation Expense...

Transcribed Image Text:

The following information pertains to Guy's Gear Company: Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense $ 47,500 5,500 11,500 $ 75,000 Net Income 64,500 $ 10,500 Accounts Receivable Decrease $ 3,500 Inventory Increase 7,500 Salaries and Wages Payable Increase 700 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GUY'S GEAR COMPANY Cash Flows from Operating ActivitiesIndirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities The following information pertains to Guy's Gear Company: Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense $ 47,500 5,500 11,500 $ 75,000 Net Income 64,500 $ 10,500 Accounts Receivable Decrease $ 3,500 Inventory Increase 7,500 Salaries and Wages Payable Increase 700 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GUY'S GEAR COMPANY Cash Flows from Operating ActivitiesIndirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities

Answer rating: 100% (QA)

To present the operating activities section of the statement of cash flows for Guys Gear Company usi... View the full answer