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Need help with homework. I am not sure where I am wrong, but any assistance is greatly appreciated. Also, please tell me what I did
Need help with homework. I am not sure where I am wrong, but any assistance is greatly appreciated. Also, please tell me what I did wrong and how to correct it.
Beautiful Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $47,000 and its total current liabilities totaling $39,000. At the end of the year, these same current assets totaled $45,000, while its total current liabilities totaled $50,000. Net income for the year was $10,000. Included in net income were a $1,000 gain on the sale of land and depreciation expense of $11,000. Show how Beautiful should report cash flows from operating activities for 2021. The company uses 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: Net income 10,000 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 11,000 Gain on sale of land Decrease in accounts receivable, inventory, and prepaid expenses 1,000 (2,000) 3,000 Increase in current liabilities 14000 Net cash provided by (used for) operating activities 24000Step by Step Solution
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