ash Flows from (Used for) Operating Activities he income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income U The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $8,180 (4,650) (1,750) (5,540) 1,750 1,220 $52,500 30,620 402,700 a. Prepare the Cash Flows from (used for) 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.
ash Flows from (Used for) Operating Activities he income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income U The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $8,180 (4,650) (1,750) (5,540) 1,750 1,220 $52,500 30,620 402,700 a. Prepare the Cash Flows from (used for) 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cash Flows from (Used for) Operating Activities
The income statement disclosed the following items for the year:
Depreciation expense
Gain on disposal of equipment
Net income
The changes in the current asset and liability accounts for the year are as follows:
Accounts receivable
Inventory
Prepaid insurance
Accounts payable
Income taxes payable
Dividends payable
to
a. Prepare the Cash Flows from (used for) 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.
R
F
Q Search
с
Cash flows from (used for) onerating activities:
F5
%
5
Increase
(Decrease)
$8,180
(4,650)
(1,750)
(5,540)
1,750
1,220
T
G
F6
6
$52,500
30,620
402,700
Y
H
Y
Statement of Cash Flows (partial)
2-
F7
7
LO PIEC
U
J
F8
8
F9
K
9
09
F10
0
F11
1
P
0:+
F12
PrtSc
+ 11
Insert
2:41
2/6/2
Delete
Backspa
لك
Transcribed Image Text:Cash Flows from (Used for) Operating Activities
The income statement disclosed the following items for the year:
Depreciation expense
Gain on disposal of equipment
Net income
The changes in the current asset and liability accounts for the year are as follows:
Accounts receivable
Inventory
Prepaid insurance
Accounts payable
Income taxes payable
Dividends payable
to
a. Prepare the Cash Flows from (used for) 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.
R
F
Q Search
с
Cash flows from (used for) onerating activities:
F5
%
5
Increase
(Decrease)
$8,180
(4,650)
(1,750)
(5,540)
1,750
1,220
T
G
F6
6
$52,500
30,620
402,700
Y
H
Y
Statement of Cash Flows (partial)
2-
F7
7
LO PIEC
U
J
F8
8
F9
K
9
09
F10
0
F11
1
P
0:+
F12
PrtSc
+ 11
Insert
2:41
2/6/2
Delete
Backspa
لك
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