Exercise 12-3A (Algo) Use the indirect method to determine cash flows from operating activities LO 12-1 Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue Cash flows from operating activities: Plus: Year 2 $32,989 1,429 595 The income statement reported a $1,350 gain on the sale of equipment, an $990 loss on the sale of land, and $3,600 of depreciation expense. Net income for the period was $53,161. Less: Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Prev 10,440 2,612 2,954 Year 1 $39,587 1,250 476 4 of 10 12,528 2,985 3,938

Exercise 12-3A (Algo) Use the indirect method to determine cash flows from operating activities LO 12-1 Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets. The income statement reported a $1,350 gain on the sale of equipment, an $990 loss on the sale of land, and $3,600 of depreciation expense. Net income for the period was $53,161 Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) The income statement reported a $1,350 gain on the sale of equipment, an $990 loss on the sale of land, and $3,600 of depreciation expense. Net income for the period was $53,161. Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)