Cash Flow Statement using the Indirect Method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:M57
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58 Prepare a Cash Flow Statement using the Indirect Method.
59 DO NOT use the DIRECT Method
60 Not all accounts listed may be used in this example
61
62 Net income
$1,500,000
63 Cash December 31, 2018
$750,000
64 Cash December 31 2019
???????
65 Depreciation Expense
66 Increase in inventory
67 Decrease in accounts payable
$20,000
$15,000
$32,000
68 Increase in Prepaid insurance
$31,000
69 Purchased stock
$22,000
70 Purchased Jand
$99,000
71 Paid mortgage
$60,000
72 Paid car loan
$43,000
73 Increase in wages payable
$11,000
74 Patient Receivable
$24,000.00
75
76
77
78
79
57
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