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Exercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance shee Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next. Income Statement Sales Salary expense Other operating expenses Operating income Nonoperating items: Interest revenue Net Income Year 2 $47,000 4,650 30,100 10,050 Year 1 $41,000 6,850 18,000 15,150 $745,000 (156,500) (252,500) 334,000 25,900 $359,900 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities

Exercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance shee Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next. Income Statement Sales Salary expense Other operating expenses Operating income Nonoperating items: Interest revenue Net Income Year 2 $47,000 4,650 30,100 10,050 Year 1 $41,000 6,850 18,000 15,150 $745,000 (156,500) (252,500) 334,000 25,900 $359,900 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities

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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Exercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets. Year 1 $41,000 6,850 18,000 15,150 Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next Income Statement Sales Salary expense Other operating expenses Operating income. Nonoperating items: Interest revenue Net Income Year 2 $47,000 4,650 30,100 10,050 a. Cash inflows from operating activities b. Cash outflows from operating activities $745,000 (158,500) (252,500) 334,000 25,900 $359,900 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities
Transcribed Image Text:Exercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets. Year 1 $41,000 6,850 18,000 15,150 Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next Income Statement Sales Salary expense Other operating expenses Operating income. Nonoperating items: Interest revenue Net Income Year 2 $47,000 4,650 30,100 10,050 a. Cash inflows from operating activities b. Cash outflows from operating activities $745,000 (158,500) (252,500) 334,000 25,900 $359,900 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities
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