The following account balances for the noncash current assets and current liabilities of Suffolk Company are available:
Question:
Net income for 2010 is $40,000. Depreciation expense is $20,000. Assume that all sales and all purchases are on account.
Required
1. Prepare the Operating Activities section of the statement of cash flows using the indirect method.
2. Provide a brief explanation as to why cash flow from operating activities is more or less than the net income of theperiod.
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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