Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Statement

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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.

Corporation
A 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...
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Intermediate Accounting

ISBN: 978-1259548185

8th edition

Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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