Exercise 12-4A Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011 year-end balance sheets. Account Title Unearned revenue Prepaid rent 2012 $6,500 1,800 2011 $5,000 2,400 During the year, $68,000 of unearned revenue was recognized as having been earned. Rent expense for 2012 was $15,000. Required Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. LO 2

Exercise 12-4A Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011 year-end balance sheets. Account Title Unearned revenue Prepaid rent 2012 $6,500 1,800 2011 $5,000 2,400 During the year, $68,000 of unearned revenue was recognized as having been earned. Rent expense for 2012 was $15,000. Required Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. LO 2

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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