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please help with all questions including word Operating Activities Section-Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk
please help with all questions including word
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 Totals December 31 2017 2016 $43,230 $35,340 30,020 39,890 17,110 14,830 $90,360 $90,060 $26,200 $19,380 5,880 9,590 14,680 11,630 $46,760 $40,600 Net income for 2017 is $39,580. Depreciation expense is $19,100. 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 Net income Adjustments to reconcile net income to net cash provided by operating activities: Increase in inventory X Decrease in accounts payable x Decrease in accounts receivable x Decrease in prepaid rent x Increase in income taxes payable x Decrease in income taxes payable Decrease in accounts receivable x Net cash inflow from operating activities Feedback 2. Net cash inflow from operating activities is $ and the primary reason why it is higher than net income is increase in accounts payable Other reasons for the higher amount of net cash inflow from operating activities are increase in accounts receivable X and decrease in interest payable XStep by Step Solution
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