Red Cab Company reports net income of $ 32,000 for the year ended December 31, 2013. The

Question:

Red Cab Company reports net income of $ 32,000 for the year ended December 31, 2013. The income statement also reveals Depreciation Expense, Equipment of $ 6,500 and a Gain on Disposal of Property and Equipment of $ 1,200. The comparative reveals that Accounts Receivable, net decreased by $ 1,300; Prepaid Insurance decreased by $ 800; increased by $ 1,800; and Rent Payable decreased by $ 750. Prepare the Operating Activities section of the statement of cash flows for Red Cab Company using the indirect method.

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...