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prepared the operating section of the statement of cash flow using the indirect method, which ones (could be one or multiple) of the following line

  1. prepared the operating section of the statement of cash flow using the indirect method, which ones (could be one or multiple) of the following line items are incorrectly listed?
  • Net Income 3,000
  • Change in accounts receivable -3,000
  • Change in inventory 1,000
  • Change in Accounts Payable -1,000
  • Change in Unearned Revenue -1,000
  • Change in Bonds Payable 1,000

Year0

Year1

Cash

3,000

2,000

AccountsReceivables

2,000

5,000

Inventory

3,000

4,000

Property, Plant and Equipment(net)

12,000

11,000

AccountsPayable

5,000

4,000

Unearned Revenue

2,000

1,000

BondsPayable

5,000

6,000

Common Stock

3,000

4,000

RetainedEarnings

5,000

7,000

Income Statement (Year 1)



Sales 20,000

Costs of Goods Sold (8,000)

Wage Expense (5,000)

Depreciation Expense (2,000)

Net Income Before Tax 5,000

Tax Expense (2,000)

Net Income 3,000


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