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Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,270,000.
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,270,000. Depreciation expense of $160,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: $172,000 128,000 Increase in accounts receivable Decrease in inventories Decrease in prepaid expenses 82,000 Decrease in salaries payable Increase in income taxes payable 50,000 64,000 Required: Prepare the cash flows from operating activities for 2018. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operatingg activities
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