Question
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $141,500. Depreciation recorded on store
Cash Flows from (Used for) Operating Activities
The net income reported on the income statement for the current year was $141,500. Depreciation recorded on store equipment for the year amounted to $23,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year | Beginning of Year | |||
Cash | $53,770 | $48,930 | ||
Accounts receivable (net) | 38,550 | 36,160 | ||
Merchandise inventory | 52,640 | 55,050 | ||
Prepaid expenses | 5,910 | 4,650 | ||
Accounts payable (merchandise creditors) | 50,380 | 46,290 | ||
Wages payable | 27,530 | 30,240 |
Question Content Area
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Cash flows from operating activities: | ||
CashDecrease in accounts receivableDepreciationIncrease in wages payableNet incomeNet income | $Net income | |
Adjustments to reconcile net income to net cash flows from (used for) operating activities: | ||
CashDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in wages payableDepreciation | Depreciation | |
Changes in current operating assets and liabilities: | ||
CashDepreciationIncrease in accounts receivableIncrease in inventoriesIncrease in wages payableIncrease in accounts receivable | Increase in accounts receivable | |
CashDecrease in accounts receivableDecrease in merchandise inventoryIncrease in inventoriesIncrease in prepaid expensesDecrease in merchandise inventory | Decrease in merchandise inventory | |
CashDecrease in accounts receivableIncrease in prepaid expensesIncrease in inventoriesIncrease in wages payableIncrease in prepaid expenses | Increase in prepaid expenses | |
CashDecrease in accounts payableDepreciationIncrease in accounts payableIncrease in wages payableIncrease in accounts payable | Increase in accounts payable | |
CashDecrease in accounts receivableDecrease in wages payableIncrease in prepaid expensesIncrease in wages payableDecrease in wages payable | Decrease in wages payable | |
Net cash flow from operating activities | $fill in the blank 1515b5000ffe05b_15 |
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