Operating activities—indirect method (Learning Objective 3) 10–15 min.

Use the following information to calculate the amount of cash flows from operating activities using the indirect method.AppendixLO1

Transcribed Image Text:

Net Income $530,000 Beginning Accounts Payable.. $100,000 Depreciation Expense. 83,000 Ending Accounts Payable.. 130,000 Beginning Accounts Receivable. 130,000 Purchase of Equipment... 430,000 Ending Accounts Receivable 145,000 Issuance of Long-term Bonds......... 200,000 Beginning Inventory............. 500,000 Issuance of Stock for Cash. 240,000 Ending Inventory....... 550,000 Issuance of Stock for Long-term Assets..... 102,000 Beginning Prepaid Insurance. 18,000 Purchase of Treasury Stock.............. 38,000 Ending Prepaid Insurance 22,000 Sale of Long-term Investment at Cost........... 33,000