Cash Flow from Operating Activities (Indirect Method) The Azuza Company owns no plant assets and had the following income statement for the year: $930,000 Sales revenue Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 Net income 914,000 $16,000 Additional information about the company includes: End of Beginning of Year Year Accounts receivable $67,000 Inventory 62,000 Prepaid rent 9,000 Accounts payable 22,000 $59,000 86,000 7,000 30,000
Cash Flow from Operating Activities (Indirect Method) The Azuza Company owns no plant assets and had the following income statement for the year: $930,000 Sales revenue Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 Net income 914,000 $16,000 Additional information about the company includes: End of Beginning of Year Year Accounts receivable $67,000 Inventory 62,000 Prepaid rent 9,000 Accounts payable 22,000 $59,000 86,000 7,000 30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Cash Flow from Operating Activities (Indirect Method)
The Azuza Company owns no plant assets and had the following income statement for the year:
$930,000
Sales revenue
Cost of goods sold $650,000
Wages expense
210,000
Rent expense
42,000
Utilities expense
12,000
Net income
914,000
$16,000
Additional information about the company includes:
End of Beginning of
Year
Year
Accounts receivable $67,000
62,000
9,000
22,000
9,000
Inventory
Prepaid rent
Accounts payable
Wages payable
$59,000
86,000
7,000
30,000
7,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3c134ff-b7ac-4f59-841d-6bdd50fc3944%2F7ab3c06f-c06f-40b3-9993-3eee06832157%2F652rkbd_processed.png&w=3840&q=75)
Transcribed Image Text:Cash Flow from Operating Activities (Indirect Method)
The Azuza Company owns no plant assets and had the following income statement for the year:
$930,000
Sales revenue
Cost of goods sold $650,000
Wages expense
210,000
Rent expense
42,000
Utilities expense
12,000
Net income
914,000
$16,000
Additional information about the company includes:
End of Beginning of
Year
Year
Accounts receivable $67,000
62,000
9,000
22,000
9,000
Inventory
Prepaid rent
Accounts payable
Wages payable
$59,000
86,000
7,000
30,000
7,000
![Use the preceding information to calculate the cash flow from operating activities using the indirect method.
Remember to use negative signs with answers when appropriate.
Cash Flow from Operating Activities
Net Income
Add (deduct) items to convert net income to cash basis
Accounts Receivable
+
÷
Inventory
Prepaid Rent
Accounts Payable
Wages Payable
Cash Provided by Operating Activities
Save Answers
0000
+
+
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3c134ff-b7ac-4f59-841d-6bdd50fc3944%2F7ab3c06f-c06f-40b3-9993-3eee06832157%2Fpunc3th_processed.png&w=3840&q=75)
Transcribed Image Text:Use the preceding information to calculate the cash flow from operating activities using the indirect method.
Remember to use negative signs with answers when appropriate.
Cash Flow from Operating Activities
Net Income
Add (deduct) items to convert net income to cash basis
Accounts Receivable
+
÷
Inventory
Prepaid Rent
Accounts Payable
Wages Payable
Cash Provided by Operating Activities
Save Answers
0000
+
+
$
$
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