Question
The Potter Company reported net income of 225,000 for the current year. Depreciation recorded on buildings and equipment amounted to 74,000 for the year. Balances
The Potter Company reported net income of 225,000 for the current year. Depreciation recorded on buildings and equipment amounted to 74,000 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 $20,000 $15,000
Accounts recievable $19,000 $32,000
Inventories $50,000 $65,000
Prepaid expenses $7,000 $5,000
Accounts payable $12,000 $18,000
Income taxes payable $1600 $1200
prepare the cash flows from operating activities section of the statement of cash flows using indirect method
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