Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $158,200 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $3,200 Decrease in inventories 8,000 Depreciation 12,300 Gain on sale of investments 5,500 Increase in accounts payable 2,200 Increase in prepaid expenses 1,400 Increase in accounts receivable 6,000 a. Determine the net income reported by Curwen Inc. for the year ended December 31.
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $158,200 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $3,200 Decrease in inventories 8,000 Depreciation 12,300 Gain on sale of investments 5,500 Increase in accounts payable 2,200 Increase in prepaid expenses 1,400 Increase in accounts receivable 6,000 a. Determine the net income reported by Curwen Inc. for the year ended December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determining Net Income from Net Cash Flow from Operating Activities
Curwen Inc. reported net cash flow from operating activities of $158,200 on its statement of
| Decrease in income taxes payable | $3,200 |
| Decrease in inventories | 8,000 |
| 12,300 | |
| Gain on sale of investments | 5,500 |
| Increase in accounts payable | 2,200 |
| Increase in prepaid expenses | 1,400 |
| Increase in |
6,000 |
a. Determine the net income reported by Curwen Inc. for the year ended December 31.
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