balance sheets: Account Title Accounts receivable Prepaid rent Utilities payable Other operating expenses payable The Year 2 income statement is shown next: Sales Rent expense Income Statement Utilities expense Other operating expenses Net Income Year 2 $ 71,300 $ 322,000 (23,300) (35,600) (167,800) $ 95,300 730 1,570 32,900 Cash Flows from Operating Activities-Direct Method Cash flows from operating activities: Year 1 $ 81,500 920 1,030 35,500 Required a. Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.
balance sheets: Account Title Accounts receivable Prepaid rent Utilities payable Other operating expenses payable The Year 2 income statement is shown next: Sales Rent expense Income Statement Utilities expense Other operating expenses Net Income Year 2 $ 71,300 $ 322,000 (23,300) (35,600) (167,800) $ 95,300 730 1,570 32,900 Cash Flows from Operating Activities-Direct Method Cash flows from operating activities: Year 1 $ 81,500 920 1,030 35,500 Required a. Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vikrambhai
Transcribed Image Text:balance sheets:
Account Title
Accounts receivable
Prepaid rent
Utilities payable
Other operating expenses payable
The Year 2 income statement is shown next:
Sales
Rent expense
Income Statement
Utilities expense
Other operating expenses
Net Income
Year 2
$ 71,300
$ 322,000
(23,300)
(35,600)
(167,800)
$ 95,300
Net cash flow from operating activities
Cash Flows from Operating Activities-Direct Method
Cash flows from operating activities:
730
1,570
32,900
Required
a. Prepare the operating activities section of the statement of cash flows using the direct method.
Note: Amounts to be deducted should be indicated with a minus sign.
Year 1
$ 81,500
920
1,030
35,500
0
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