Data Table Cash Accounts Receivable Inventory Aug 1 70,000 Aug 1 1,000 Aug 1 3,000 Receipts Aug 31 460,000 Payments 445,000 85,000 Credit sales 540,000 Collections 440,000 Purchases 438,000 Cost of Sales 336,000 Aug 31 101,000 Aug 31 105,000 Equipment Aug 1 187,000 Acquisition Aug 31 4,000 191,000 Accumulated Deprec.-Equipment Accounts Payable Aug 1 52,000 Aug 1 16,000 Depreciation Aug 31 4,000 Payments 56,000 334,000 Purchases 438,000 Aug 31 120,000 Accrued Liabilities Retained Earnings Aug 1 Payments 34,000 Accruals Aug 31 11,000 Quarterly 31,000 Dividend Aug 1 67,000 15,000 Net Income 35,000 8,000 Aug 31 87,000 The accounting records of the Soft Trading Post Company include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Collections from customers Decrease in accrued liabilities Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventory Net income Payments to suppliers Purchase of equipment Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is The in Accounts Payable indicates that the company Overall, operations generated a net cash flow, which is sign. The accounting records of the Soft Trading Post Company include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Do Collections from customers Decrease in accrued liabilities Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventory Net income So Payments to suppliers Purchase of equipment operations? How can you tell? selling inventory. There is The in Accounts Payable indicates that the company ns generated a net cash flow, which is sign. The accounting records of the Soft Trading Post Company include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Collections from customers Decrease in accrued liabilities Depreciation Increase in accounts payable Do Increase in accounts receivable Increase in inventory So Net income Payments to suppliers Purchase of equipment operations? How can you tell? selling inventory. There is The In Accounts Payable indicates that the company ns generated a net cash flow, which is sign. The accounting records of the Soft Trading Post Company include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Collections from customers Decrease in accrued liabilities Depreciation Do Increase in accounts payable 1 operations? How can you tell? Increase in accounts receivable So selling inventory. There is The in Accounts Payable indicates that the company. Increase in inventory Net income Payments to suppliers Purchase of equipment ns generated a net cash flow, which is sign. The accounting records of the Soft Trading Post Company Include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Collections from customers Decrease in accrued liabilities Do Depreciation operations? How can you tell? Increase in accounts payable So selling inventory. There is The in Accounts Payable indicates that the company Increase in accounts receivable ns generated a net cash flow, which is sign. Increase in inventory Net income Payments to suppliers Purchase of equipment The accounting records of the Soft Trading Post Company include these accounts: (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Collections from customers Do Decrease in accrued liabilities So Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventory Net income Payments to suppliers Purchase of equipment operations? How can you tell? selling inventory. There is The in Accounts Payable indicates that the company ns generated a net cash flow, which is sign. Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is The in Accounts Payable indicates that the company Overall, operations generated a net cash flow, which is sign. no signs of trouble signs of trouble Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is . The in Accounts Payable indicates that the company net cash flow, which is sign. . Overall, no signs of trouble signs of trouble Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and Overall, operations generated a selling inventory. There is net cash flow The in Accounts Payable indicates that the company a large decrease in both Accounts Receivable and Inventory a large buildup in both Accounts Receivable and Inventory no large buildup in either Accounts Receivable or Inventory Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is . The in Accounts Payable indicates that the company Overall, operations generated a net cash flow, which is sign. decrease increase Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is . The in Accounts Payable indicates that the company Overall, operations generated a net cash flow, which is sign. is not having any difficulty paying creditors may have difficulty paying creditors in the future Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and Overall, operations generated a selling inventory. There is net cash flow, which is . The in Accounts Payable indicates that the company sign. negative positive Do you see any potential problems in the company's cash flows from operations? How can you tell? Soft shows collecting receivables and selling inventory. There is Overall, operations generated a net cash flow, which is sign. a favorable an unfavorable . The in Accounts Payable indicates that the company