Question
The net income reported on an income statement for the current year was $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances
The net income reported on an income statement for the current year was $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.
| End | Beginning |
Cash | $65,000 | $ 70,000 |
Accounts receivable (net) | 70,000 | 57,000 |
Inventories | 86,000 | 102,000 |
Prepaid expenses | 4,000 | 4,500 |
Accounts payable |
|
|
(merchandise creditors) | 51,000 | 58,000 |
Cash dividends payable | 4,500 | 6,500 |
Salaries payable | 6,000 | 7,500 |
|
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