Question
At Dec. 31, 2020, the Evonik Industries Inc. reported its buildings and equipment depreciation amounts as 80, 000, and the net income of 2020 was
At Dec. 31, 2020, the Evonik Industries Inc. reported its buildings and equipment depreciation amounts as 80, 000, and the net income of 2020 was $160,000. According to the records, by comparing the amounts between the beginning and end of the year, the following table showed the detail information about current asset and current liability accounts.
Please try to use indirect method to prepare the cash flows from the operation activities section.
| End of Year | Beginning |
Inventories | $55,000 | $65,000 |
Accounts receivable | 24,000 | 32,000 |
Prepaid expense | 9,500 | 5,000 |
Accounts payable | 12,000 | 18,000 |
Interest Payable | 1,600 | 1,200 |
Cash | 20,000 | 15,000 |
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