Exercise 16-2 Indirect: Reporting cash flows from operations LO P2

Hampton Company reports the following information for its recent calendar year.

Required:

Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Exercise 16-3 Indirect: Reporting and interpreting cash flows from operations LO P2

Arundel Company disclosed the following information for its recent calendar year.

Required:

1. Prepare the operating activities section of the statement of cash flows using the indirect method. (Any losses or amounts to be deducted should be indicated with a minus sign.)

Income Statement Data Selected Year-End Balance Sheet Data Sales Expenses $73,000 Accounts receivable increase Inventory decrease $6,000 5,000 700 Cost of goods sold Salaries expense Depreciation expense 39,000 Salaries payable increase 12,000 8,000 $14,000 Net income