Chisholm Associates uses the indirect method for preparing the statement of cash flows. The following accounts and
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Question:
Chisholm Associates uses the indirect method for preparing the statement of cash flows. The following accounts and balances were drawn from the company's accounting records:
Beg. Bal. End. Bal.
Accounts receivable $31,350 $41,650
Prepaid insurance 5,950 2,650
Accounts payable 25,350 27,450
Unearned revenue 7,750 5,450
Net income for the period was $56,500. The net cash flows from operating activities would be:
$54,400.
$62,100.
$49,300.
$53,900.
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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