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Spectacular Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $61,000. At the end of the year, Spectacular had a total of
Spectacular Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $61,000. At the end of the year, Spectacular had a total of $75,000 for these current assets. At the beginning of the year, it owed current liabilities o $47 000, and at year-end, current abilities totale d $39 000 Net income or the year was $87 DO. included in et income as a an the aleaf and and depreciation expense of $8,000. Show how Spectacular should report cash flows from operating activities for the year. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Spectacular Corporation Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: S 87,000 Depreclation Gain on sale of land Increase in accounts recelvable, Inventory, and prepald expenses Decrease in current liabilities $ 8,000 Net cash provided by (used for) operating activities
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