Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the...

Transcribed Image Text:

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $129,200. Depreciation recorded on store equipment for the year amounted to $21,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year Beginning of Year $52,710 $47,970 37,790 35,450 51,600 53,970 5,800 4,560 45,380 29,650 49,390 26,990 < a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decrease negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: 29,650 Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 00000 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 0000000 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $129,200. Depreciation recorded on store equipment for the year amounted to $21,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year Beginning of Year $52,710 $47,970 37,790 35,450 51,600 53,970 5,800 4,560 45,380 29,650 49,390 26,990 < a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decrease negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: 29,650 Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 00000 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 0000000 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when

Answer rating: 100% (QA)

a Cash Flows from Operating Activities are shown in the table below Cash f... View the full answer