Exercise igo) Indirect: Reporting cash flows from operations Hampton Company reports the following information for Iits recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data $75,000 Accounts receivable increase Inventory decrease 41,000 Salaries payable increase $9,000 5,000 Sales Expenses: Cost of goods sold Salaries expense Depreciation expense 700 11,000 6,000 Net income $17,000 Requlred: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be ndicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 17,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 6,000 Accounts receivable increase (9,000) Inventory decrease 5,000 Salaries payable increase 700 $ 19,700
Exercise igo) Indirect: Reporting cash flows from operations Hampton Company reports the following information for Iits recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data $75,000 Accounts receivable increase Inventory decrease 41,000 Salaries payable increase $9,000 5,000 Sales Expenses: Cost of goods sold Salaries expense Depreciation expense 700 11,000 6,000 Net income $17,000 Requlred: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be ndicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 17,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 6,000 Accounts receivable increase (9,000) Inventory decrease 5,000 Salaries payable increase 700 $ 19,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12 ex 2

Transcribed Image Text:Exercise 12-2 (Algo) Indirect: Reporting cash flows from operations LO P2
Hampton Company reports the following information for Its recent calendar year.
Income Statement Data
Selected Year-End Balance Sheet Data
$75,000 Accounts receivable increase
Inventory decrease
Salaries payable increase
$9,000
5,000
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
41,000
11,000
6,000
$17,000
700
Net income
Requlred:
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.)
Answer is not complete.
Statement of Cash Flows (partial)
Cash flows from operating activities
S 17,000
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense
Accounts receivable increase
6,000
(9,000)
Inventory decrease
Salaries payable increase
5,000
700
IS
19,700
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