Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts...

 

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Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes - payable decreased $2,000. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in current assets and liabilities $ 0 Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes - payable decreased $2,000. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in current assets and liabilities $ 0

Answer rating: 100% (QA)

Net income 15000 Adjustments Increase in Accounts Receivable 6000 deducted because an increase in ... View the full answer