Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. reported the following December 31 comparative balance sheets.Balance SheetsCash and cash equivalentsAccounts receivableEquipmentAccumulated depreciationTotal assetsSalaries payableLong-term notes payableCapital stockRetained earningsTotal liabilities and stockholders' equityPrior Year Current Year$2,000$5,3751,5001,0005,0007,500(500)(1.000)$8,000$12,875$500$1,0002,5002,5004,0004,0001,0005,375$8,000$12,875Additional information:1. Net income for the current year was $4,875.2. No disposals of equipment took place during the year.38°FCh 5-Cash Flows IndirectPrepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities.Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Name: Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. report
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Description: Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. reported the following December 31 comparative balance sheets.Balance SheetsCash and cash equivalentsAccounts receivableEquipmentAccumulated depreciationTotal assetsSalaries payableLong-

The operating section of statement of cash flows under indirect method is prepared by adjusting non…

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Indirect Method- Preparing a Statement of Cash Flows Calex Inc. reported the following December 31 comparative balance sheets. Balance Sheets Cash and cash equivalents Accounts receivable Equipment Accumulated depreciation Total assets Salaries payable $500 Long-term notes payable 2,500 Capital stock 4,000 Retained earnings 1,000 Total liabilities and stockholders' equity $8,000 Prior Year Current Year $2,000 $5,375 1,000 7,500 (1,000) $12,875 1,500 5,000 (500) $8,000 38°E $1,000 2,500 4,000 5,375 $12,875 Additional information: 1. Net income for the current year was $4,875. 2. No disposals of equipment took place during the year. Ch 5-Cash Flows Indirect Prepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities. Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Indirect Method- Preparing a Statement of Cash Flows Calex Inc. reported the following December 31 comparative balance sheets. Balance Sheets Cash and cash equivalents Accounts receivable Equipment Accumulated depreciation Total assets Salaries payable $500 Long-term notes payable 2,500 Capital stock 4,000 Retained earnings 1,000 Total liabilities and stockholders' equity $8,000 Prior Year Current Year $2,000 $5,375 1,000 7,500 (1,000) $12,875 1,500 5,000 (500) $8,000 38°E $1,000 2,500 4,000 5,375 $12,875 Additional information: 1. Net income for the current year was $4,875. 2. No disposals of equipment took place during the year. Ch 5-Cash Flows Indirect Prepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities. Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

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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