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

Question:

Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,250,000. Depreciation expense of $140,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and 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 2018.

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: 9781259722660

9th Edition

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

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