1 s kipped eBook Exercise 12-4A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Avia Company's Year 2 and Year 1 year-end balance sheets: Year 2 $ 7,400 1,720 Year 1 $ 4,800 2,690 Account Title Unearned revenue Prepaid rent During the year, $66,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $20,500. Required Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Amounts to be deducted should be indicated with a minus sign. Cash flow from operating activities: Net cash flow from operating activities Check my work $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
1
s
kipped
eBook
Mc
Gram
Exercise 12-4A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2
The following accounts and corresponding balances were drawn from Avia Company's Year 2 and Year 1 year-end balance sheets:
Year 2
$ 7,400
1,720
Year 1
$ 4,800
2,690
Account Title
Unearned revenue
Prepaid rent
During the year, $66,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $20,500.
Required
Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach
is used.
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flow from operating activities:
+
Net cash flow from operating activities
$
0
Prev
Check my work
1 of 9
Next >
6:42 PM
Transcribed Image Text:1 s kipped eBook Mc Gram Exercise 12-4A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Avia Company's Year 2 and Year 1 year-end balance sheets: Year 2 $ 7,400 1,720 Year 1 $ 4,800 2,690 Account Title Unearned revenue Prepaid rent During the year, $66,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $20,500. Required Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Amounts to be deducted should be indicated with a minus sign. Cash flow from operating activities: + Net cash flow from operating activities $ 0 Prev Check my work 1 of 9 Next > 6:42 PM
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education