Presented below is the operating activities section of the statement of cash flows forKerry Corp. for 2013:Operating activities:Cash collected from sales$550 000Cash payments for inventory(150 000)Cash payments for operating expenses(275 000)Net cash inflow from operating activities $125 000Which method of preparing the operating activities section has Kerry used?The cash flow methodThe indirect methodCannot be determined without further informationO The direct method

The question is based on the concept of Cash flow statement.

Answered: Presented below is the operating…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is the operating activities section of the statement of cash flows f Kerry Corp. for 2013: Operating activities: Cash collected from sales $550 000 Cash payments for inventory (150 000) Cash payments for operating expenses (275 000)