The net income reported on the income statement for the current year was $378,000. Depreciation recorded on
Question:
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.
Transcribed Image Text:
Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable End of Year $100,800 127,800 252,000 14,040 112,680 16,200 Beginning of Year $107,100 132,120 227,700 15,120 119,520 14,850
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