Question
Suppose your company reports $210 of net income and $50 of cash dividends paid, and its comparative balance sheet indicates the following. Beginning Ending Cash
Suppose your company reports $210 of net income and $50 of cash dividends paid, and its comparative balance sheet indicates the following.
| Beginning | Ending | |||||||||
| Cash | $ | 45 | $ | 255 | ||||||
| Accounts Receivable | 125 | 225 | ||||||||
| Inventory | 295 | 185 | ||||||||
| Total | $ | 465 | $ | 665 | ||||||
| Salaries and Wages Payable | $ | 20 | $ | 100 | ||||||
| Common Stock | 150 | 110 | ||||||||
| Retained Earnings | 295 | 455 | ||||||||
| Total | $ | 465 | $ | 665 | ||||||
Required: 1. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
14th Canadian edition
134613112, 134835018, 9780134885254 , 978-0134613116
