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 2021 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 inventory .............................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 2021.
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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