Question
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. The income statement disclosed the following items
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.
The income statement disclosed the following items for 2015:
Depreciation expense | $36,000 |
Gain on disposal of equipment | 21,000 |
Net income | $265,500 |
Balances of the current assets and current liabilities accounts changed between December 31, 2014 and December 31, 2015, as follows:
Increase in accounts receivable | $6,800 |
Decrease in inventory | 3,200 |
Increase in prepaid insurance | 1,200 |
Decrease in account payable | 3,800 |
Increase in income taxes payable | 1,200 |
Increase in dividends payable | 850 |
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