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
Related questions
Question
Vikrambhai
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a2239ef-cb49-4c50-a4f1-0b4a03ac5cee%2F8e907dd7-ef89-4c20-8ca7-de676b394d3a%2Fxjwnnoo_processed.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education