E12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2

The following information pertains to Peak Heights Company:

E12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2

The following information pertains to Peak Heights Company:

Income Statement for Current Year
Sales			$	86,100
Expenses
Cost of goods sold	$	51,775
Depreciation expense		7,800
Salaries expense		11,900		71,475
Net income			$	14,625

Partial Balance Sheet	Current year		Prior year
Accounts receivable	$	10,100	$	12,100
Inventory		12,200		8,600
Salaries payable		1,580		900

Required:

Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. (List cash outflows as negative amounts.)

Partial Balance Sheet	Current year		Prior year
Accounts receivable	$	10,100	$	12,100
Inventory		12,200		8,600
Salaries payable		1,580		900

Required:

Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. (List cash outflows as negative amounts.)

PEAK HEIGHTS COMPANY
Statement of Cash Flows (Partial)
Cash flows from operating activities:
Net income
Depreciation expense
Accounts receivable increase
	$0