Partial balance sheets and additional information are listed below for Sowell Company. Sowell Company Partial Balance Sheets as of December 31 Assets Cash Accounts receivable Inventory Liabilities Accounts payable Additional information for 2024: 2024 2023 $ 20,000 85,000 35,000 $ 54,000 $ 62,000 $ 40,000 70,000 40,000 Net income was $88,000. Depreciation expense was $19.000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Partial balance sheets and additional information are listed below for Sowell Company.
Sowell Company
Partial Balance Sheets
as of December 31
Assets
Cash
Accounts receivable
Inventory
Liabilities
Accounts payable
Additional information for 2024:
Net income was $88,000,
Depreciation expense was $19,000.
Net income.
Net loss
2024
$ 40,000
70,000
40,000
$ 54,000
Net cash flows from operating activities
Required:
Prepare the operating activities section of the statement of cash flows for 2024 using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flows from operating activities:
2023
$ 20,000
85,000
35,000
$ 62,000
Transcribed Image Text:Partial balance sheets and additional information are listed below for Sowell Company. Sowell Company Partial Balance Sheets as of December 31 Assets Cash Accounts receivable Inventory Liabilities Accounts payable Additional information for 2024: Net income was $88,000, Depreciation expense was $19,000. Net income. Net loss 2024 $ 40,000 70,000 40,000 $ 54,000 Net cash flows from operating activities Required: Prepare the operating activities section of the statement of cash flows for 2024 using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities: 2023 $ 20,000 85,000 35,000 $ 62,000
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