1. ( Ames Company reported 2014 net income of $ 151,000. During increased by 9,500 and accounts payable increased by $ 13,000. Depreciation was the cash flows from operating activities section of the statement of cash flows. 2014, accounts receivable $ expense $44,000. Prepare
1. ( Ames Company reported 2014 net income of $ 151,000. During increased by 9,500 and accounts payable increased by $ 13,000. Depreciation was the cash flows from operating activities section of the statement of cash flows. 2014, accounts receivable $ expense $44,000. Prepare
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ames Company reported 2014 net income of $ 151,000. During
2014, accounts receivable increased by $ 9,500 and accounts payable
increased by $ 13,000. Depreciation expense was $ 44,000. Prepare the cash
flows from operating activities section of the statement of cash flows.
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Step 1 Introduction
A cash flow statement is a statement that depicts the movement of cash (i,e, inflow of cash, and outflow of cash) in three different activities of the organization. Such activities are investing activities (deals with investments in assets), financing activities (deals with capital), and operating activities (deals with operational activities).
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