Arundel Company disclosed the following information for its recent calendar year. $ 100,000 Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash 84,000 Salaries payable increase 14,000 Interest payable decrease 14,600 3,400 $ (16,000) Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Net loss Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash $ 24,000 10,000 18,000 8,000 Depreciation expense Changes in current assets and liabilities
Arundel Company disclosed the following information for its recent calendar year. $ 100,000 Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash 84,000 Salaries payable increase 14,000 Interest payable decrease 14,600 3,400 $ (16,000) Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Net loss Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash $ 24,000 10,000 18,000 8,000 Depreciation expense Changes in current assets and liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Arundel Company disclosed the following information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable decrease
Purchased a machine for cash
Salaries payable increase
Interest payable decrease
Income Statement Data
Revenues
Expenses:
Salaries expense
Utilities expense
Depreciation expense
Interest expense
Net loss
$ 100,000
84,000
14,000
14,600
3,400
$ (16,000)
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Net loss
Adjustments to reconcile net income to net cash provided by operating activities:
Income statement items not affecting cash
Depreciation expense
Changes in current assets and liabilities
$ 24,000
10,000
18,000
8,000
$
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