Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $251,100. Depreciation recorded on equipment and a building amounted to $75,100 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $63,280 $66,440 Accounts receivable (net) 80,240 81,990 Inventories 158,200 141,250 Prepaid expenses 8,800 9,370 Accounts payable (merchandise creditors) 70,680 74,150 Salaries payable 10,190 9,240 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $251,100. Depreciation recorded on equipment and a building amounted to $75,100 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $63,280 $66,440 Accounts receivable (net) 80,240 81,990 Inventories 158,200 141,250 Prepaid expenses 8,800 9,370 Accounts payable (merchandise creditors) 70,680 74,150 Salaries payable 10,190 9,240 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The net income reported on the income statement for the current year was $251,100.
| End of Year | Beginning of Year | |||
| Cash | $63,280 | $66,440 | ||
| 80,240 | 81,990 | |||
| Inventories | 158,200 | 141,250 | ||
| Prepaid expenses | 8,800 | 9,370 | ||
| Accounts payable (merchandise creditors) | 70,680 | 74,150 | ||
| Salaries payable | 10,190 | 9,240 |
a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate
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