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I especially need help with part 2, thank you. E12-9 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) [LO
I especially need help with part 2, thank you.
E12-9 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) [LO 12-2, LO 12-5] New Vision Company completed its income statement and balance sheet and provided the following information: $66,000 Service Revenue Expenses: Salaries and Wages Depreciation Utilities Office Net Income Decrease in Accounts Receivable Paid cash for equipment Increase in Salaries and Wages Payable Decrease in Accounts Payable $ 42,000 7,300 6,000 1,700 57,000 $ 9,000 $12,000 5,000 9,000 4,250 Required: 1. Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method. 2. Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) NEW VISION COMPANY Cash Flows from Operating ActivitiesIndirect Method Net Income $ 9,000 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Depreciation 7,300 Changes in Current Assets and Current Liabilities Accounts Receivable Decrease Salaries and Wages Payable Increase Accounts Payable Decrease 12,000 9,000 (4,250) Net Cash Provided by Operating Activities $ 33,050 Required 1 Required 2 >Step by Step Solution
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