Cain Inc. reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes payable decreased $2,000. Compute cash flows from operations using the indirect method.
Cain Inc. reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes payable decreased $2,000. Compute cash flows from operations using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cain Inc. reports net income of $15,000. Its comparative
receivable
accounts payable increased $3,000; and taxes payable decreased $2,000. Compute
using the indirect method.
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