The accounting records of North East Distributors, Inc., reveal the following: Requirement 1. Compute cash flows from
Question:
Requirement
1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit.
Also evaluate the operating cash flow of North East Distributors. Give the reason for yourevaluation.
Transcribed Image Text:
Net i Collection of dividend revenue . Payment of interest..11,000Increase in current assets Sales revenue... Loss on sale of land.2 Acquisition of land ..42,000 $17,000 Depreciation. Decrease in current lia 7,800 13,000 22,000 other than cash Payment of dividens 7,800 Payment of income tax15,000 The Roadster Factory, Inc. (TRF) Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2011 (In thousands) Cash flows from operating activities: $50 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Gain on sale of plant assets Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in salary and wage payable Decrease in accrued liabiliti S 18 B 34 27 $77 Net cash provided by operating activities....
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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