Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Accounts receivable increase Inventory decrease $6,000 4,000 700 Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income $78,000 36,000 Salaries payable increase 8,000 7,000 $27,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted show indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities 0
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Accounts receivable increase Inventory decrease $6,000 4,000 700 Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income $78,000 36,000 Salaries payable increase 8,000 7,000 $27,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted show indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Hampton Company reports the following
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
Inventory decrease
$78,000
36,000 Salaries payable increase
8,000
7,000
$27,000
Cash flows from operating activities
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.)
Statement of Cash Flows (partial)
$6,000
4,000
700
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c209ad6-8043-42ed-987f-ae4220ad38f0%2F5e63b731-94aa-4670-abd6-61ee8bb65d00%2Fx1ftqn_processed.png&w=3840&q=75)
Transcribed Image Text:Hampton Company reports the following
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
Inventory decrease
$78,000
36,000 Salaries payable increase
8,000
7,000
$27,000
Cash flows from operating activities
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.)
Statement of Cash Flows (partial)
$6,000
4,000
700
$
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