The net income reported on the income statement for the current year was $255,800. Depreciation recorded on

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The net income reported on the income statement for the current year was $255,800. Depreciation recorded on equipment and a building amounted to $53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

The net income reported on the income

a. Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
b. If the direct method had been used, would the net cash flow from operating activities have been the same?Explain.

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Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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