Determining Net Cash Flow from Operating Activities Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $8,600 $17,500 Accounts receivable 8,000 10,500 Inventory 22,500 21,000 Accounts payable 10,000 11,200 Income taxes payable 2,500 1,100 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (20,400) Other expenses (35,000) Income tax expense (12,000) Net income $22,600 Required: Compute the net cash flows from operating activities using the indirect method. 43,000 X

Determining Net Cash Flow from Operating Activities Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $8,600 $17,500 Accounts receivable 8,000 10,500 Inventory 22,500 21,000 Accounts payable 10,000 11,200 Income taxes payable 2,500 1,100 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (20,400) Other expenses (35,000) Income tax expense (12,000) Net income $22,600 Required: Compute the net cash flows from operating activities using the indirect method. 43,000 X

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 29BE

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