Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The net income reported on the income statement of Hunter Inc. for the current year was $150,000.Depreciation recorded on equipment and building amounted to $45,000

The net income reported on the income statement of Hunter Inc. for the current year was $150,000.Depreciation recorded on equipment and building amounted to $45,000 for the year.Balances of the current asset and current liability accounts at the beginning and end of the year are as follows

Account End of Year Beginning of Year

Cash 42,875 36,250

Trade Receivables (net) 147,500 137,500

Inventories 109,375 93,750

Prepaid Expenses 9,250 11,875

Accounts Payable 57,000 40,000

Salaries Payable 7,625 10,625

Dividends Payable 4,250 3,125

Interest Received on Investments 1,800 1,500

How do i prepare the cash flows from operating activities of the statement of cash flow using the indirect method?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

14th Edition

133081605, 132575957, 9780133081602, 978-0132575959

Students also viewed these Accounting questions

Question

How are most students funded?

Answered: 1 week ago