Question: Need help ASAP! Cash Flows from Operating Activities --Indirect Method The net income reported on the income statement for the current year was $124,900. Depreciation

Cash Flows from Operating Activities --Indirect Method The net income reported on the income statement for the current year was $124,900. Depreciation recorded on store equipment for the year amounted to $20,600. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $49,460 $45,010 Accounts receivable (net) 35,460 33,260 Inventories 48,420 50,640 Prepaid expenses 5,440 4,280 Accounts payable (merchandise creditors) 46,340 42,580 Wages payable 25,320 27,820 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the Indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 4,280 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 5,440 46,340 25,320 42,580 27,820 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities of accounting. For example revenues are recorded on b. Cash flows from operating activities differs from net income because it does not use the the income statement when
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
