Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: Increase in salaries payable Net cash flows from operating activities $ 24,700 $ 10 2,800 27,500
Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: Increase in salaries payable Net cash flows from operating activities $ 24,700 $ 10 2,800 27,500
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 1MCQ: Cash inflows from operating activities come from a. payment for raw materials. b. gains on the sale...
Related questions
Question
100%
The accounting records of Rockness Company provided the data below ($ in 000s).
| Net income | $ 24,700 |
|---|---|
| Depreciation expense | 2,800 |
| Decrease in accounts receivable | 1,500 |
| Increase in inventory | 4,000 |
| Increase in prepaid insurance | 250 |
| Increase in salaries payable | 750 |
| Decrease in interest payable | 350 |
Required:
Prepare a reconciliation of net income to net cash flows from operating activities.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands of dollars.
Transcribed Image Text:Cash flows from operating activities:
Net income
Adjustments for noncash effects:
Depreciation expense
Changes in operating assets and liabilities:
Increase in salaries payable
Net cash flows from operating activities
$
24,700
$
10
2,800
27,500
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