Fanning Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Accounts payable The Year 2 income statement showed net income of $25,700. Cash flows from operating activities Year 2 $ 12,300 $ 7,800 Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with minus sign. Net cash flow from operating activities Year 1 $ 18,500 $9,300 $ 0

Fanning Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Accounts payable The Year 2 income statement showed net income of $25,700. Cash flows from operating activities Year 2 $ 12,300 $ 7,800 Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with minus sign. Net cash flow from operating activities Year 1 $ 18,500 $9,300 $ 0

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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Subject: accounting
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