1 Exercise 16-3 Calculating cash flows from operating activities (indirect method) LOS The account balances for the non-cash current assets and current Habilities of Kid-game Software Inc. are as follows: 02:48:09 look Accounts receivable Inventory Prepaid expenses Totals Recounts payable Salaries payable Interest payable Total December 31 2020 2019 $131.000 $110,100 93,100 125.100 55,200 50.600 $279,300 $285,800 $ 89,000 $ 68,400 26,700 38,900 50.600 41.700 $166.300 $149,000 During 2020, Kid-game Software Inc. reported depreciation expenser $61,000. All purchases and sales are on account. Profit for 2020 was $257,000. Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) KID-GAME SOFTWARE INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities Adjustments to reconcile profit to net cash provided by operating activities Proy 1 of 3 !!! Next > Exercise 16-7 Preparing the statement of cash flows (indirect method) LO2, 5, 6 34 15 Western Environnental Tog. Comparative Malance sheet Information June 30 2020 2015 Cash $ 92,160 $ 47,000 Accounts receivable (net) 102,000 75,500 Inventory 80.220 116,220 Prepaid expenses 6,540 6,300 Equipoent 262,000 150,000 Related depreciation 34,800 18.000 Account payable 32,400 39,600 Wages payable 9,600 20,400 Income taxes payable 2.940 4,30 Notes payable ong-term) 54,000 90,000 Common shares 282,000 222.000 Retained earnings 27,180 740 Book $ 792,000 480,000 $312.000 Western Union al toc. Income Statement For Year Ended June 30, 2020 Sales Cast of goods sold Cross profit Operating expenses Depreciation expense $ 70,380 other expenses 80,460 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes Protit 150840 5161, 160 3.600 $164.960 61,160 3103,600 Required: Me G HE Exercise 16-7 Preparing the statement of cash flows (indirect method) LO2, 5, 6 34 15 Western Environnental Tog. Comparative Malance sheet Information June 30 2020 2015 Cash $ 92,160 $ 47,000 Accounts receivable (net) 102,000 75,500 Inventory 80.220 116,220 Prepaid expenses 6,540 6,300 Equipoent 262,000 150,000 Related depreciation 34,800 18.000 Account payable 32,400 39,600 Wages payable 9,600 20,400 Income taxes payable 2.940 4,30 Notes payable ong-term) 54,000 90,000 Common shares 282,000 222.000 Retained earnings 27,180 740 Book $ 792,000 480,000 $312.000 Western Union al toc. Income Statement For Year Ended June 30, 2020 Sales Cast of goods sold Cross profit Operating expenses Depreciation expense $ 70,380 other expenses 80,460 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes Protit 150840 5161, 160 3.600 $164.960 61,160 3103,600 Required: Me G HE