QS 12-4 (Static) Indirect: Computing cash flows from operations LO P2Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivableincreased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxespayable decreased $2,000. Compute cash flows from operations using the indirect method.Note: Amounts to be deducted should be indicated by a minus sign.Cash Flows from Operating Activities (Indirect)Adjustments to reconcile net income to net cash provided by operating activitiesChanges in current assets and liabilities$

The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…

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Compute cash flows from operations using the indirect method. ted should be indicated by a minus sign.

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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Question

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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