Question
Cash Flows from Operating ActivitiesIndirect Method Staley Inc. reported the following data: Net income $204,000 Depreciation expense 69,800 Loss on disposal of equipment 22,200 Increase
Cash Flows from Operating ActivitiesIndirect Method
Staley Inc. reported the following data:
| Net income | $204,000 |
| Depreciation expense | 69,800 |
| Loss on disposal of equipment | 22,200 |
| Increase in accounts receivable | 16,700 |
| Increase in accounts payable | 10,600 |
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
| Cash flows from operating activities: | ||
| Depreciation Increase in accounts receivable Net income | $____ | |
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Depreciation Increase in accounts payable Increase in accounts receivable | ______ | |
| Increase in accounts payable Increase in accounts receivable Loss on disposal of equipment | ______ | |
| Changes in current operating assets and liabilities: | ||
| Depreciation Increase in accounts receivable Loss on disposal of equipment | _____ | |
| Depreciation Increase in accounts payable Loss on disposal of equipment | ____ | |
| Net cash flow from operating activities | $______ |
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
8th Edition
1260881245, 9781260881240
