IV. The net income reported on the income statement for the current year was P255,800. Depreciation recorded on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the year Beginning of the year Cash P 42,000 P 44,200 Accounts receivable (net) 56,400 67,000 Inventories 125,900 112,600 Prepaid expenses 5,800 6,000 Accounts payable (merchandise creditors) 61,400 67,500 Salaries payable 8,300 7,900 Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
IV. The net income reported on the income statement for the current year was P255,800. Depreciation recorded on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the year Beginning of the year Cash P 42,000 P 44,200 Accounts receivable (net) 56,400 67,000 Inventories 125,900 112,600 Prepaid expenses 5,800 6,000 Accounts payable (merchandise creditors) 61,400 67,500 Salaries payable 8,300 7,900 Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.3.4MBA
Related questions
Question
![IV.
The net income reported on the income statement for the current year was P255,800. Depreciation recorded
on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current
liability accounts at the beginning and end of the year are as follows:
End of the year Beginning of the year
Cash
P 42,000
P 44,200
Accounts receivable (net)
56,400
67,000
Inventories
125,900
112,600
Prepaid expenses
5,800
6,000
Accounts payable (merchandise creditors)
61,400
67,500
Salaries payable
8,300
7,900
Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the
indirect method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66a0df69-01d0-423e-99f5-573144beb050%2F70160c77-5edc-4a8a-8a4d-5a15b1de1da7%2Fr84xap_processed.jpeg&w=3840&q=75)
Transcribed Image Text:IV.
The net income reported on the income statement for the current year was P255,800. Depreciation recorded
on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current
liability accounts at the beginning and end of the year are as follows:
End of the year Beginning of the year
Cash
P 42,000
P 44,200
Accounts receivable (net)
56,400
67,000
Inventories
125,900
112,600
Prepaid expenses
5,800
6,000
Accounts payable (merchandise creditors)
61,400
67,500
Salaries payable
8,300
7,900
Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the
indirect method.
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