Question
The net income reported on the income statement for the current year was $252,500. Depreciation recorded on equipment and a building amounted to $75,500 for
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The net income reported on the income statement for the current year was $252,500. Depreciation recorded on equipment and a building amounted to $75,500 for the year. 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 $69,690 $73,870 Accounts receivable (net) 88,370 91,160 Inventories 174,230 157,050 Prepaid expenses 9,690 10,420 Accounts payable (merchandise creditors) 77,840 82,440 Salaries payable 11,220 10,270 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial) Cash flows from operating activities: Decrease in prepaid expensesDepreciationIncrease in inventoriesNet income
$- Select - Adjustments to reconcile net income to net cash flow from operating activities: Decrease in accounts payableDecrease in accounts receivableDepreciationIncrease in accounts receivable
- Select - Changes in current operating assets and liabilities: Decrease in accounts receivableDecrease in salaries payableDepreciationIncrease in accounts receivable
- Select - Decrease in inventoriesIncrease in accounts receivableIncrease in inventoriesIncrease in prepaid expenses
- Select - Decrease in prepaid expensesIncrease in accounts payableIncrease in accounts receivableIncrease in prepaid expenses
- Select - Decrease in accounts payableDecrease in salaries payableDepreciationIncrease in accounts payable
- Select - Decrease in salaries payableIncrease in accounts receivableIncrease in prepaid expensesIncrease in salaries payable
- Select - Net cash flow from operating activities $fill in the blank 5937bbfc7016fdc_15 NoYes
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