Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,300 loss on sale of land, $1,400 increase in inventory, $7,300 increase in income taxes payable, $3,000 net income, $67,200 patent amortization expense, $1,000 ordinary loss, $6,200 decrease in deferred taxes payable, $2,900 amortization of discount on bonds payable, $1,200 payment of cash dividends, $28,000 depletion expense, $4,500 decrease in salaries payable, $1,200 decrease in accounts receivable, $3,500 gain on sale of equipment, $6,500 proceeds from issuance of stock, $64,000 ordinary gain, $3,200 depreciation expense, $20,000 amortization of discount on investment in bonds, $1,100 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Net Cash Flow From Operating Activities

Verna Company's records provided the following information for 2019:

  1. decrease in accounts payable, $4,300
  2. loss on sale of land, $1,400
  3. increase in inventory, $7,300
  4. increase in income taxes payable, $3,000
  5. net income, $67,200
  6. patent amortization expense, $1,000
  7. ordinary loss, $6,200
  8. decrease in deferred taxes payable, $2,900
  9. amortization of discount on bonds payable, $1,200
  10. payment of cash dividends, $28,000
  11. depletion expense, $4,500
  12. decrease in salaries payable, $1,200
  13. decrease in accounts receivable, $3,500
  14. gain on sale of equipment, $6,500
  15. proceeds from issuance of stock, $64,000
  16. ordinary gain, $3,200
  17. depreciation expense, $20,000
  18. amortization of discount on investment in bonds, $1,100

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.

 

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