QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) + Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 0
QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) + Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2
Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of
$3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the
indirect method.
Note: Amounts to be deducted should be indicated by a minus sign.
Cash Flows from Operating Activities (Indirect)
+
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$
0
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