Lui Inc. reported the following for the fiscal year 2014: Additional information: 1. Accounts receivable decreased by

Question:

Lui Inc. reported the following for the fiscal year 2014:

Lui Inc. reported the following for the fiscal year 2014:
Additional

Additional information:
1. Accounts receivable decreased by $21,000 during the year.
2. Inventory increased by $32,000 during the year.
3. Prepaid expenses decreased by $7,000 during the year.
4. Accounts payable to suppliers decreased by $5,000 during the year.
5. Accrued expenses payable increased by $8,500 during the year.
6. Interest payable increased by $3,500 during the year.
7. Income tax payable decreased by $6,500 during the year.
Instructions
Assuming the company reports under ASPE, prepare the operating activities section of the cash flow statement using (a) the indirect method or (b) the direct method, as assigned by your instructor.
TAKING IT FURTHER
Will the amount of cash provided (used) by operations always be the same amount if it is determined by using the direct method or the indirect method? Explain.

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 Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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