Question: Can a tutor check my work. My professor never explained cash flows in depth with our class. Wages payable is confusing me since I believe
Can a tutor check my work. My professor never explained cash flows in depth with our class. Wages payable is confusing me since I believe there are two answers for that line.
Reconciling and Computing Operating Cash Flows from Net Income Petroni Company reports the following selected results for its current calendar year.
| Net income | $130,000 |
| Depreciation expense | 28,000 |
| Accounts receivable increase | 10,000 |
| Accounts payable increase | 6,000 |
| Prepaid expenses decrease | 3,000 |
| Wages payable decrease | 4,000 |
| Petroni Company Statement of Cash Flows (operating section) | ||
| Operating activities |
|
|
| Net income |
| 130,000 |
| Adjustments to reconcile net income to operating cash flow |
|
|
| Depreciation | 28,000 |
|
| Changes in operating assets and liabilities | ||
| Accounts receivable | -10,000 |
|
| Prepaid expense | 3,000 |
|
| Accounts payable | 6,000 |
|
| Wages payable | -4,000 | ????? |
| Net cash provided from operating activities |
| 153,000 |
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