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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. 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:

      End
    of Year    		 Beginning
    of 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?

     
     
     
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