Managerial Accounting $-$ Summer $2024$

Amanda Valencia

$07/21/2411$:$00$ PM

Test: Test $3$

Question $2$ of $5$

This test: $100$ point$($s$)$ possible

This question: $20$ point$($s$)$ possible

Baxter Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $$62,000.$ At the end of the year, Baxter had a total of $$71,000$ for these current assets. At the beginning of the year, it owed current liabilities of $$46,000,$ and at year$-$end, current liabilities totaled $$43,000.$ Net income for the year was $$89,000.$ Included in net income was a $$5,000$ gain on the sale of land and depreciation expense of $$10,000.$

Show how Baxter should report cash flows from operating activities for the year. The company uses the indirect method. $($Use parentheses or a minus sign for numbers to be subtracted.$)$

Baxter Corporation

Statement of Cash Flows$-$Operating Activities Section $($Indirect Method$)$

Not attempted

For the Year Ended

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities $q,$

$q,$

Net cash provided by $($used for$)$ operating activities

$(1)$ Time Remaining: $02$:$53$:$37$

$$