E12-9 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) [LO 12-2, LO 12-5]

New Vision Company completed its income statement and balance sheet and provided the following information:

Service Revenue				$	66,000
Expenses:
Salaries and Wages	$	42,000
Depreciation		7,300
Utilities		6,000
Office		1,700			57,000
Net Income				$	9,000
Decrease in Accounts Receivable	$	12,000
Paid cash for equipment		5,000
Increase in Salaries and Wages Payable		9,000
Decrease in Accounts Payable		4,250

Required:

1. Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method.
2. Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts?

• Required 2

Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts? (Select all that apply.)

	Changes in Management of Operating Activities Changes in Revenue and Expense Recognition Different Methods of Preparing Cash Flows and Income Statement.