Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 5E: Cash flows from operating activitiesindirect method The net income reported on the income statement...
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Question
The net income reported on the income statement for the current year was $136,700.
End of Year | Beginning of Year | |||
Cash | $54,000 | $49,140 | ||
38,720 | 36,310 | |||
Inventories | 52,870 | 55,280 | ||
Prepaid expenses | 5,940 | 4,670 | ||
Accounts payable (merchandise creditors) | 50,600 | 46,490 | ||
Wages payable | 27,650 | 30,370 |
a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate
Statement of Cash Flows (partial) | ||
Cash flows from operating activities: | ||
Net income | $fill in the blank b0d74603ef9cfe2_2 | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Depreciation | fill in the blank b0d74603ef9cfe2_4 | |
Changes in current operating assets and liabilities: | ||
Increase in accounts receivable | fill in the blank b0d74603ef9cfe2_6 | |
Decrease in inventories | fill in the blank b0d74603ef9cfe2_8 | |
Increase in prepaid expenses | ||
Increase in accounts payable | ||
Decrease in wages payable | ||
Net cash flow from operating activities |
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