Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,700 loss on sale of land, $2,000 increase in inventory, $7,900 increase in income taxes payable, $3,000 net income, $70,000 patent amortization expense, $2,000 ordinary loss, $6,000 decrease in deferred taxes payable, $2,700 amortization of discount on bonds payable, $1,300 payment of cash dividends, $24,000 depletion expense, $4,700 decrease in salaries payable, $1,500 decrease in accounts receivable, $3,700 gain on sale of equipment, $6,400 proceeds from issuance of stock, $59,000 ordinary gain, $3,700 depreciation expense, $19,000 amortization of discount on investment in bonds, $1,200 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,700 loss on sale of land, $2,000 increase in inventory, $7,900 increase in income taxes payable, $3,000 net income, $70,000 patent amortization expense, $2,000 ordinary loss, $6,000 decrease in deferred taxes payable, $2,700 amortization of discount on bonds payable, $1,300 payment of cash dividends, $24,000 depletion expense, $4,700 decrease in salaries payable, $1,500 decrease in accounts receivable, $3,700 gain on sale of equipment, $6,400 proceeds from issuance of stock, $59,000 ordinary gain, $3,700 depreciation expense, $19,000 amortization of discount on investment in bonds, $1,200 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Net Cash Flow From Operating Activities
Verna Company's records provided the following information for 2019:
- decrease in accounts payable, $4,700
- loss on sale of land, $2,000
- increase in inventory, $7,900
- increase in income taxes payable, $3,000
- net income, $70,000
- patent amortization expense, $2,000
- ordinary loss, $6,000
- decrease in
deferred taxes payable, $2,700 - amortization of discount on bonds payable, $1,300
- payment of cash dividends, $24,000
- depletion expense, $4,700
- decrease in salaries payable, $1,500
- decrease in
accounts receivable , $3,700 - gain on sale of equipment, $6,400
- proceeds from issuance of stock, $59,000
- ordinary gain, $3,700
depreciation expense, $19,000- amortization of discount on investment in bonds, $1,200
Required
Prepare the operating activities section of Verna's 2019 statement of
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