Question: Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Statement of Net income for the 2016 fiscal year
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Statement of Net income for the 2016 fiscal year was $1,250,000. Depreciation expense of $140,000 was included with cash flows: operating expenses in the income statement. The following information describes the changes in current assets and indirect method liabilities other than cash:
Increase in accounts receivable.............................. $152,000
Decrease in inventories....................................... 108,000
Decrease prepaid expenses................................... 62,000
Decrease in salaries payable................................. 30,000
Increase in income taxes payable........................... 44,000
Required:
Calculate cash flows from operating activities for 2016.
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