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Options for 1 no signs of trouble / signs of trouble Options for 2 no signs of trouble / signs of trouble Options for 3
Options for 1 no signs of trouble / signs of trouble
Options for 2 no signs of trouble / signs of trouble
Options for 3 large decrease in both accounts receivable and inventory/ large build up of both accounts receivable and inventory/ no large buildup in either accounts receivable or inventory
Options for 4 increase/ decrease
Options for 5 is not having any difficulty paying creditors / may have difficulty paying creditors in the future
Options for 6 positive/ negative
Options for 7 favorable/ unfavorable
The accounting records of the Wilderness Trading Post Company include these accounts: E (Click the icon to view the accounts.) Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of December. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of December using 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 $ 22,000 Adjustment to reconcile net income to net cash provided by (used for) operating activities: Depreciation $ 4,000 Increase in accounts receivable Increase in inventory Increase in accounts payable (100,000) (102,000) 107,000 (4,000) Decrease in accrued liabilities (95,000) Net cash provided by used for) operating activities $ (73,000) Do you see any potential problems in the company's cash flows from operations? How can you tell? The Vin Wilderness shows collecting receivables and Accounts Payable indicates that the company selling inventory. There is V. Overall, operations generated a V net cash flow, which is VsignStep by Step Solution
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