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Cash Flow from Operating Activities (Indirect Method) The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue

Cash Flow from Operating Activities (Indirect Method)

The Azuza Company owns no plant assets and had the following income statement for the year:

Sales revenue $930,000
Cost of goods sold $650,000
Wages expense 210,000
Rent expense 42,000
Utilities expense 12,000 914,000
Net income $16,000

Additional information about the company includes:

End of Year Beginning of Year
Accounts receivable $67,000 $59,000
Inventory 62,000 86,000
Prepaid rent 9,000 7,000
Accounts payable 22,000 30,000
Wages payable 9,000 7,000

Use the preceding information to calculate the cash flow from operating activities using the indirect method.

Remember to use negative signs with answers when appropriate.

Cash Flow from Operating Activities
Net Income Answer
Add (deduct) items to convert net income to cash basis
Accounts Receivable AnswerIncreaseDecrease Answer
Inventory AnswerIncreaseDecrease Answer
Prepaid Rent AnswerIncreaseDecrease Answer
Accounts Payable AnswerIncreaseDecrease Answer
Wages Payable AnswerIncreaseDecrease Answer
Cash Provided by Operating Activities Answer

Please answer all parts of the question.

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