Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,200 increase in inventory, $7,400 increase in income taxes payable, $2,700 net income, $69,400 patent amortization expense, $1,500 ordinary loss, $6,400 decrease in deferred taxes payable, $2,300 amortization of discount on bonds payable, $1,400 payment of cash dividends, $26,000 depletion expense, $5,000 decrease in salaries payable, $2,000 decrease in accounts receivable, $3,600 gain on sale of equipment, $6,000 proceeds from issuance of stock, $56,000 ordinary gain, $3,100 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,500 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, $4,000 loss on sale of land, $1,200 increase in inventory, $7,400 increase in income taxes payable, $2,700 net income, $69,400 patent amortization expense, $1,500 ordinary loss, $6,400 decrease in deferred taxes payable, $2,300 amortization of discount on bonds payable, $1,400 payment of cash dividends, $26,000 depletion expense, $5,000 decrease in salaries payable, $2,000 decrease in accounts receivable, $3,600 gain on sale of equipment, $6,000 proceeds from issuance of stock, $56,000 ordinary gain, $3,100 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,500 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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Question
Net Cash Flow From Operating Activities
Verna Company's records provided the following information for 2019:
- decrease in accounts payable, $4,000
- loss on sale of land, $1,200
- increase in inventory, $7,400
- increase in income taxes payable, $2,700
- net income, $69,400
- patent amortization expense, $1,500
- ordinary loss, $6,400
- decrease in
deferred taxes payable, $2,300 - amortization of discount on bonds payable, $1,400
- payment of cash dividends, $26,000
- depletion expense, $5,000
- decrease in salaries payable, $2,000
- decrease in
accounts receivable , $3,600 - gain on sale of equipment, $6,000
- proceeds from issuance of stock, $56,000
- ordinary gain, $3,100
depreciation expense, $10,000- amortization of discount on investment in bonds, $1,500
Required
Prepare the operating activities section of Verna's 2019 statement of
Expert Solution
Step 1
Cash flow from operating activities is the part of cash flow statement. It helps to know the operating cash flow situation.
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