The net income reported on the income statement for the current year was $165,300. Depreciation recorded on
Question:
a. Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
b. If the direct method had been used, would the net cash flow from operating activities have been the same?Explain.
Transcribed Image Text:
End of Ye Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 42,000 65,400 125,900 5,800 61,400 8,300 43,500 69,200 115,100 6,400 64,200 8,000
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a Cash flows from operating activities Net income 165300 Ad...View the full answer
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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