Exercise 11-7 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Distributors reports net income of $57,000. Included in that number is depreciation expense of $11,000 and a loss on the sale of land of $5,200. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $27,000, a decrease in inventory of $16,000, and an increase in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

Exercise 11-7 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Distributors reports net income of $57,000. Included in that number is depreciation expense of $11,000 and a loss on the sale of land of $5,200. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $27,000, a decrease in inventory of $16,000, and an increase in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

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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