Question
Exercise 11-6 (Algo) Calculate operating activities-indirect method (LO11-3) Bead World reports net income of $149,000. Included in net income is a gain on the
Exercise 11-6 (Algo) Calculate operating activities-indirect method (LO11-3) Bead World reports net income of $149,000. Included in net income is a gain on the sale of land of $12,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $19,000, an increase in inventory of $12,000, and a decrease in accounts payable of $39,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) BEAD WORLD Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
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