Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net
Question:
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $624,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:
Decrease in accounts receivable ...........$22,000
Increase in inventory ..................................9,200
Increase prepaid expenses ........................8,500
Increase in salaries payable ....................10,000
Decrease in income taxes payable ........14,000
Required:
Prepare the operating activities section of the 2021 statement of cash flows.
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Step by Step Answer:
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas