Pella Company presents its statement of cash flows using the indirect method. The following accounts and corresponding
Question:
Pella Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Pella’s Year 2 and Year 1 year-end balance sheets:
The income statement reported a $700 loss on the sale of equipment, a $900 gain on the sale of land, and $2,500 of depreciation expense. Net income for the period was $36,500.
Required
Prepare the operating activities section of the statement of cash flows.
Account Title Year 2 Year 1 Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue $24,000 1,650 $21,000 1,900 1,200 8,500 2,900 1,800 900 10,200 2,700 2,000
Step by Step Answer:
Cash Flows from Operating Activities Net Income 36500 Add Decrease in prepaid ren...View the full answer
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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