Molloy Ltd. reported the following for the fiscal year 2017: Additional information: 1. Accounts receivable decreased by

Question:

Molloy Ltd. reported the following for the fiscal year 2017:

Additional information:
1. Accounts receivable decreased by $15,000 during the year.
2. Inventory increased by $7,000 during the year.
3. Prepaid expenses decreased by $5,000 during the year.
4. Accounts payable to suppliers increased by $10,000 during the year.
5. Accrued expenses payable increased by $4,000 during the year.
6. Income tax payable decreased by $6,000 during the year.
Instructions
Prepare the operating activities section of the cash flow statement using either (a) the indirect method or (b) the direct method, as assigned by your instructor.
TAKING IT FURTHER
In what circumstances will the direct method result in a different amount of cash provided (used) by operations than the indirect method?

Accounts Payable
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