Question
The net income reported on the income statement for the current year was $165,300. Depreciation for the year on the equipment and a building accounted
The net income reported on the income statement for the current year was $165,300.
Depreciation for the year on the equipment and a building accounted for $46,700.
Balances of the current asset and current liability accounts at the beginning and end of
the year are as follows:
End of Year Beginning of Year
Cash $42,500 $43,500
Accounts Receivable 65,400 69,200
Inventories 125,900 115,100
Prepaid expenses 5,800 6,400
Accounts payable (mdse. creditors) 61,400 64,200
Salaries payable 8,300 8,000
Prepare the cash flows from operating activities section of the statement of cash flows,
using the indirect method.
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