Extra Problem

The Fantastic Hotel's current account balances at the beginning and end of the year were as

follows:

In addition, the hotel had total revenue of $$4,800,000,$ expenses of $$3,300,000,$ and depreciation

of $$80,000$ during the year. The hotel's average tax rate is $10\%.$

Required: Construct the cash from operating activities section of the SCF$.$

Indirect Method

Net Cash Flows from Operating Activities:

Net Income

Adjustments to reconcile net income

to net cash flows from operating

activities:

Depreciation expense

in accounts receivables

in prepaid expenses

in accounts payable

in wages payable

in interest payable

Net Cash Flows from Operating Activities