M12-5 Computing Cash Flows from Operating Activities (Indirect Method) [LO 12-2]

The two independent cases are listed below:

	Case A						Case B
	Year 2			Year 1			Year 2			Year 1
Sales Revenue	$	10,200		$	5,000		$	20,200		$	14,000
Cost of Goods Sold		5,280			2,300			11,280			8,280
Gross Profit		4,920			2,700			8,920			5,720
Depreciation Expense		1,000			1,000			1,100			1,100
Salaries and Wages Expense		1,700			1,200			4,200			4,200
Net Income		2,220			500			3,620			420
Accounts Receivable		260			320			670			560
Inventory		710			420			690			720
Accounts Payable		720			660			880			950
Salaries and Wages Payable		960			1,120			370			430

Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Case A Case B Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Assets and Liabilities