Maybach Incorporated presents its statement of cash flows using the Indirect method. The following accounts and...

Transcribed Image Text:

Maybach Incorporated presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $ 26,000 $ 23,900 Accounts payable 14,400 17,500 The Year 2 Income statement showed net Income of $28,500. Required: Prepare the operating activities section of the statement of cash flows. Cash Flows from Operating Activities Net income Net cash inflow from operating activities 27 Maybach Incorporated presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $ 26,000 $ 23,900 Accounts payable 14,400 17,500 The Year 2 Income statement showed net Income of $28,500. Required: Prepare the operating activities section of the statement of cash flows. Cash Flows from Operating Activities Net income Net cash inflow from operating activities 27