Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Statement
Question:
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Statement of Net income for the 2016 fiscal year was $1,250,000. Depreciation expense of $140,000 was included with cash flows: operating expenses in the income statement. The following information describes the changes in current assets and indirect method liabilities other than cash:
Increase in accounts receivable.............................. $152,000
Decrease in inventories....................................... 108,000
Decrease prepaid expenses................................... 62,000
Decrease in salaries payable................................. 30,000
Increase in income taxes payable........................... 44,000
Required:
Calculate cash flows from operating activities for 2016.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas