Required information E12-3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12- [The following information applies to the questions displayed below.] Suppose your company sells services for $525 cash this month. Your company also pays $400 in salaries and wages, which includes $215 that was payable at the end of the previous month and $185 for salaries and wages of this month. E12-3 Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Net Cash Inflow Required 2 Required 3 > Required information E12-3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12- [The following information applies to the questions displayed below.) Suppose your company sells services for $525 cash this month. Your company also pays $400 in salaries and wages, which includes $215 that was payable at the end of the previous month and $185 for salaries and wages of this month. E12-3 Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Calculate the amount that should be reported as net income. Net Income Required 2 Required 4 > Required information E12-3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12- 2) [The following information applies to the questions displayed below. Suppose your company sells services for $525 cash this month. Your company also pays $400 in salaries and wages, which includes $215 that was payable at the end of the previous month and $185 for salaries and wages of this month. E12-3 Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) Net Income Decrease in Salaries and Wages Payable Net Cash Flow from Operating Activities $
