Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $150,000. Depreciation recorded on store equipment for the year amounted to $24,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $60,900 $56,030 Accounts receivable (net) 43,670 41,410 Merchandise inventory 59,620 63,030 Prepaid expenses 6,700 5,320 Accounts payable (merchandise creditors) 57,060 53,000 Wages payable 31,180 34,630 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 The net income reported on the income statement for the current year was $150,000. Depreciation recorded on store equipment for the year amounted to $24,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $60,900 $56,030 Accounts receivable (net) 43,670 41,410 Merchandise inventory 59,620 63,030 Prepaid expenses 6,700 5,320 Accounts payable (merchandise creditors) 57,060 53,000 Wages payable 31,180 34,630 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 6E
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