Use the indirect method to determine cash flows from operating activities Chang Company presents its statement of
Question:
Use the indirect method to determine cash flows from operating activities Chang Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Chang's 2012 and 2011 year-end balance sheets.
The income statement contained a $1,200 gain on the sale of equipment, a $900 loss on the sale of land, and $2,500 of depreciation expense. Net income for the period was $52,000.
Required
Prepare the operating activities section of the statement of cash flows.
Transcribed Image Text:
Account Title 2012 2011 Accounts receivable Prepaid rent $28,000 1,800 $32,000 1,500 Interest receivable 700 500 Accounts payable Salaries payable Unearned revenue 8,500 3,600 4,000 9,800 3,200 6,000
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Cash Flows From Operating Activities Net Income 52000 Add Decrease in accounts re...View the full answer
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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