Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś
Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Cash Flow from Operating Activities (Indirect
Method)
The Arcadia Company owns no plant assets and
had the following income statement for the
year: Sales revenue $950,000 Cost of goods
sold $670,000 Wages expense 210,000 Rent
expense 42,000 Utilities expense 15,000
937,000 Net income $13,000 Additional
information about the company includes: End of
Beginning Year of Year Accounts receivable
$64,000 $59,000 Inventory 60,000 86,000
Prepaid rent 8,000 7,000 Accounts payable
22,000 28,000 Wages payable 9,000 6,000
Use the preceding information to calculate the
cash flow from operating activities using the
indirect method.
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a1aaec1-0669-4d25-aef6-e5777f277d6d%2Fef5c2cc0-7f3d-47ed-9064-b0a8aebc3b31%2Fex9aby_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cash Flow from Operating Activities (Indirect
Method)
The Arcadia Company owns no plant assets and
had the following income statement for the
year: Sales revenue $950,000 Cost of goods
sold $670,000 Wages expense 210,000 Rent
expense 42,000 Utilities expense 15,000
937,000 Net income $13,000 Additional
information about the company includes: End of
Beginning Year of Year Accounts receivable
$64,000 $59,000 Inventory 60,000 86,000
Prepaid rent 8,000 7,000 Accounts payable
22,000 28,000 Wages payable 9,000 6,000
Use the preceding information to calculate the
cash flow from operating activities using the
indirect method.
$
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