Print Item Chapter 16 1. EX.16.01 2. EX. 16.02 3. EX.16.03 4. EX.16.04 eBook Show Me How Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income $46,200 26,950 317,500 The changes in the current asset and liability accounts for the year are as follows: 5. EX.16.07.ALGO 6. EX.16.09.EXCEL.ALGO 7. EX.16.14.ALGO 8. EX. 16.17.BLANKSHEET.AL... 9. EX. 16.16.ALGO Increase (Decrease) Accounts receivable $7,200 Inventory (4,100) Prepaid insurance (1,540) Accounts payable (4,880) 1,540 1,080 10. EX.16.13.ALGO 11. EX.16.15.ALGO 12. PR.16.03.BLANKSHEET.A.. Income taxes payable Dividends payable a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) 13. PR.16.01A.BLANKSHEET Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows from operating activities is based on Progress: 5/13 items Check My Work 3 more Check My Work uses remaining. Assignment Score: 38.46% of accounting, whereas net income is computed using of accounting. Previous Next > All work saved. Save and Exit Submit Assignment for Grading