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The accounting records of the Cuddly Trading Post Company include these accounts: ( Click the icon to view the accounts. ) Requirement from operations? How
The accounting records of the Cuddly Trading Post Company include these accounts:
Click the icon to view the accounts.
Requirement
from operations? How can you tell?
Cash flows from operating activities:
Net income
Adjustment to reconcile net income to
net cash provided by used for operating activities:
Depreciation
Increase in accounts receivable
Increase in inventory
Increase in accounts payable
Decrease in accrued liabilities
Net cash provided by used for operating activities
Do you see any potential problems in the company's cash flows from operations? How can you tell?
may have difficulty paying creditors in the future Overall, operations generated a positive net cash flow, which is a favorable sign.
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