The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2018 income
Question:
The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2018 income statement showed depreciation expense of $8,000. again on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
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Dec. 31, 2018 Dec. 31, 2017 $ 19,000 $ 9,000 35,000 49,000 8,000 34,000 106,000 32,000 20,000 6,000 92,000 91,000 Cash.... Accounts receivable 44,000 55,000 6,000 21,000 150,000 Inventory... Prepaid rent Long-term investments.. Plant assets ... Accumulated depreciation Accounts payable.... Income tax payable Common stock.. Retained earnings ....... 40,000 24,000 4,000 121,000 106,000
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Net income 45000 Add deduct items to convert net income to cash basis Add ...View the full answer
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Related Book For
Financial Accounting
ISBN: 9781618531650
5th Edition
Authors: Michelle Hanlon, Robert Magee, Glenn Pfeiffer, Thomas Dyckman
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In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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