Compute cash flows from operations using the indirect method. ted should be indicated by a minus sign.
Compute cash flows from operations using the indirect method. ted should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QS 12-4 (Static) Indirect: Computing cash flows from operations LO P2
Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable
increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes
payable decreased $2,000. Compute cash flows from operations using the indirect method.
Note: Amounts to be deducted should be indicated by a minus sign.
Cash Flows from Operating Activities (Indirect)
Adjustments to reconcile net income to net cash provided by operating activities
Changes in current assets and liabilities
$
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