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$22,000 Decrease in accounts receivable Increase in inventories 9,200 Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable 8,500 10,000 14,000

$22,000 Decrease in accounts receivable Increase in inventories 9,200 Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable 8,500 10,000 14,000

FINANCIAL ACCOUNTING
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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Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2016 fiscal year was $624,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Required: Prepare the operating activities section of the 2016 statement of cash flows.

$22,000 Decrease in accounts receivable Increase in inventories 9,200 Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable 8,500 10,000 14,000
Transcribed Image Text:$22,000 Decrease in accounts receivable Increase in inventories 9,200 Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable 8,500 10,000 14,000
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