Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Operating Activities Section-Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: Accounts receivable Inventory Prepaid

image text in transcribed

Operating Activities Section-Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: Accounts receivable Inventory Prepaid rent Totals Accounts payable Income taxes payable Interest payable December 31 2017 2016 $42,920 $35,400 30,150 40,420 16,850 14.770 $89,920 $90,590 $26,280 $18,910 6,330 10,420 14,840 11,820 $47,450 $41,150 Totals Net Income for 2017 is $38,920. Depreciation expense is $20,710. Assume that all sales and all purchases are on account. Required: 1. Prepare the Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Suffolk Company Partial Statement of Cash Flows For the Year Ended December 31, 2017 Cash Provided by Operating Activities Adjustments to reconcile net income to net cash provided by operating activities: 2. Net cash inflow from operating activities is and the primary reason why it is higher than net income is Other reasons for the higher amount of net cash inflow from operating activities are and

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655515879, 978-0655515876

More Books

Students also viewed these Accounting questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago