The income statement of Hubble Company is presented below. Additional information: 1. Accounts receivable decreased $290,000 during

Question:

The income statement of Hubble Company is presented below.

Additional information:

1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000.

2. Prepaid expenses increased $175,000 during the year.

3. Accounts payable to merchandise suppliers increased $63,000 during the year.

4. Accrued expenses payable increased $145,000 during the year.


The income statement of Hubble Company is presented below. Additional


Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Hubble Company, using the indirectmethod.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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