asset and current liability accounts at the December31, 2019 and 2020 are as follows: 2020 2019 $ 9,500 $ 5,000 55,000 65,000 24,000 32,000 20,000 15,000 12,000 18,000 1,600 1,200 Prepaid expenses Inventories Accounts receivable Cash Accounts payable Accrued expense payable Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pierce Company reported net income of $160,000 with income tax expense of $19,000 for 2020.
Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current
asset and current liability accounts at the December31, 2019 and 2020 are as follows:
Prepaid expenses
Inventories
Accounts receivable
Cash
Accounts payable
Accrued expense payable
2020
$ 9,500
55,000
24,000
20,000
12,000
1,600
2019
$ 5,000
65,000
32,000
15,000
18,000
1,200
Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect
method.
Transcribed Image Text:Pierce Company reported net income of $160,000 with income tax expense of $19,000 for 2020. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the December31, 2019 and 2020 are as follows: Prepaid expenses Inventories Accounts receivable Cash Accounts payable Accrued expense payable 2020 $ 9,500 55,000 24,000 20,000 12,000 1,600 2019 $ 5,000 65,000 32,000 15,000 18,000 1,200 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.
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