Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following accounts and corresponding balances were drawn from Finch Company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Prepaid rent
The following accounts and corresponding balances were drawn from Finch Company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Prepaid rent Utilities payable Other operating expenses payable Year 2 $73,300 430 1,860 31,100 Year 1 $80,700 1,100 880 35,700 The Year 2 income statement is shown as follows. Income Statement Sales Rent expense Utilities expense Other operating expenses Net Income $ 307,000 (22,500) (35,000) (166,800) $ 82,700 Required a. Prepare the operating activities section of the statement of cash flows using the direct method. b. Prepare the operating activities section of the statement of cash flows using the indirect method. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be indicated with minus sign.) Cash Flows from Operating ActivitiesDirect Method Cash flows from operating activities: Receipts from customers Paid for rent Paid for utilities Paid for other operating expenses Net cash flow from operating activities Required A Required B 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.) Cash Flows from Operating ActivitiesIndirect Method Cash flow from operating activities: Plus: Less: Net cash flow from operating activities
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