Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $214,200. Depreciation recorded on equipment and a building amounted to $64,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $55,050 $58,350 Accounts receivable (net) 69,800 72,000 Inventories 137,630 124,050 Prepaid expenses 7,650 8,230 Accounts payable (merchandise creditors) 61,490 65,120 Salaries payable 8,860 8,110 Question Content Area a. Prepare the Cash Flows from (used for) 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. blankStatement of Cash Flows (partial)blank Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - Changes in current operating assets and liabilities: - Select - - Select - - Select - - Select - - Select - Net cash flows from operating activities $fill in the blank fac6440c4051009_15 Question Content Area b. If the direct method had been used, would the net cash flow from operating activities have been the same?
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $214,200. Depreciation recorded on equipment and a building amounted to $64,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $55,050 $58,350 Accounts receivable (net) 69,800 72,000 Inventories 137,630 124,050 Prepaid expenses 7,650 8,230 Accounts payable (merchandise creditors) 61,490 65,120 Salaries payable 8,860 8,110 Question Content Area a. Prepare the Cash Flows from (used for) 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. blankStatement of Cash Flows (partial)blank Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - Changes in current operating assets and liabilities: - Select - - Select - - Select - - Select - - Select - Net cash flows from operating activities $fill in the blank fac6440c4051009_15 Question Content Area b. If the direct method had been used, would the net cash flow from operating activities have been the same?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Cash Flows from (Used for) Operating ActivitiesThe net income reported on the income statement for the current year was $214,200.
Depreciation recorded on equipment and a building amounted to $64,000 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 YearBeginning
of YearCash $55,050 $58,350 Accounts receivable (net)69,800 72,000 Inventories 137,630 124,050 Prepaid expenses 7,650 8,230 Accounts payable (merchandise creditors) 61,490 65,120 Salaries payable 8,860 8,110 Question Content Area
a. Prepare the Cash Flows from (used for) 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 (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - Changes in current operating assets and liabilities: - Select - - Select - - Select - - Select - - Select - Net cash flows from operating activities $fill in the blank fac6440c4051009_15 Question Content Area
b. If the direct method had been used, would the net cash flow from operating activities have been the same?
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