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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 0 0 Ducd 0 b. If the direct method had been used, would the net cash flow from operating activities have been the same?
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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities 0 0 Ducd 0 b. If the direct method had been used, would the net cash flow from operating activities have been the same?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The net income reported on the income statement for the current year was $319,600.
| End of Year | Beginning of Year | |||
| Cash | $83,740 | $87,090 | ||
| 106,180 | 107,470 | |||
| Inventories | 209,350 | 185,150 | ||
| Prepaid expenses | 11,640 | 12,280 | ||
| Accounts payable (merchandise creditors) | 93,540 | 97,190 | ||
| Salaries payable | 13,480 | 12,110 |
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
Transcribed Image Text: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:
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
b. If the direct method had been used, would the net cash flow from operating activities have been the same?
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