The current assets and liabilities sections of the comparative balance sheet of Charron Inc., a private company
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Instructions
Prepare the operating activities section of the cash flow statement using the indirect method.
Transcribed Image Text:
CHARRON INC. Comparative Balance Sheet Accounts 2017 $99,000 64,000 32,500 7,500 43,000 5,000 24,000 6,800 2016 Cash Accounts receivable Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable $105,000 41,000 46,000 5,800 36,000 8,000 17,000 11,800 CHARRON INC. Income Statement Year Ended October 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Loss on sale of equipment Profit before income taxes Income taxes Profit $625,000 390,000 235,000 $88,000 23,000 8,000 119,000 116,000 29,000 87,000
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Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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