Question
The net income reported on an income statement for the current year was $250,000. Depreciation recorded on fixed assets for the year was $45,500. Balance
The net income reported on an income statement for the current year was $250,000. Depreciation recorded on fixed assets for the year was $45,500. Balance of the current asset and current liability accounts at the end and beginning of the year are listed below:
Ending Beginning
Cash $56,000 $59,500
Accounts receivable(net) 71,000 73,400
Inventories 140,000 126,500
Prepaid expenses 7,800 8,400
Accounts payable 62,600 66,400
Cash dividends payable 4,500 7,000
Salaries payable 9,000 8,250
a: Prepare the cash flows from operating activities section of a statement of cash flows using the (Indirect) method.
b: If the direct method had been required for this problem, would the net cash flows from operating activities have been the same? Explain.
(Hi, could you make the answer as a statement of cash flows. Thank you .
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