Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash flows from operating activities-Indirect method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Final Question Instructions The net income reported on the income statement

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cash flows from operating activities-Indirect method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Final Question Instructions The net income reported on the income statement for the current year was $346,400. Depreciation recorded on equipment and a building amounted to $99,330 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Cash 590,570 Beginning of Year $96,530 119,000 208,640 111,490 Accounts receivable (net) Inventories 222,910 14,540 Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 13,500 06.200 103,500 15,150 12,980 Required: A Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the Indirect method. Refer to the mount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, oth payments, decreases in cash and for any adjustments if required B. the direct method had been used, would the net cash flow from operating activities have been the same? Previous Next Check My Work 2 more Check My Work uses remaining Instructions Statement of Cash Flows Operating Activities A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions is provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments if required Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and abilities: 10 Previous Next > Check My Work 2 more Check My Works remaining Instructions Statement of Cash Flows-Operating Activities Statement of Cash Flows (partial) 1 Cash flows from operating activities: 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 Changes in current operating assets and liabilities: 7 8 9 10 11 Previous Next > Check My Work 2 more Check My Work uses remaining ash flows from operating activities-Indirect method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Final Question Instructions Statement of Cash Flows-Operating Activities Final Question A scriptions ist prov W required the B. If the direct method had been used, would the net cash flow from operating activities have been the same? Previc Check My Work 2 more Check My Work uses remaining

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started