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Required Information E12-4 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells services of $230 in exchange for $160 cash and $70 on account. Depreciation of $90. relating to equipment also is recorded. E12-4 (Algo) Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Net Cash Inflow from operating activities Required 2 Required 3

Required Information E12-4 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells services of $230 in exchange for $160 cash and $70 on account. Depreciation of $90. relating to equipment also is recorded. E12-4 (Algo) Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Net Cash Inflow from operating activities Required 2 Required 3

FINANCIAL ACCOUNTING
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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Complete this question by entering your answers in the Required 2 Required 3 Required 4 Calculate the amount that should be reported as net income. Net Income Show Transcribed Text J 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (require Complete this question by entering your answers in the tabs below. < Required 2 Net Income Depreciation Increase in Accounts Receivable Net Cash Flow from Operating Activities Required 2 Required 3 Requir (j Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) < Required 3
Transcribed Image Text:Complete this question by entering your answers in the Required 2 Required 3 Required 4 Calculate the amount that should be reported as net income. Net Income Show Transcribed Text J 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (require Complete this question by entering your answers in the tabs below. < Required 2 Net Income Depreciation Increase in Accounts Receivable Net Cash Flow from Operating Activities Required 2 Required 3 Requir (j Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) < Required 3
Required Information E12-4 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells services of $230 in exchange for $160 cash and $70 on account. Depreciation of $90. relating to equipment also is recorded. E12-4 (Algo) Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Net Cash Inflow from operating activities Required 2 Required 3
Transcribed Image Text:Required Information E12-4 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells services of $230 in exchange for $160 cash and $70 on account. Depreciation of $90. relating to equipment also is recorded. E12-4 (Algo) Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Net Cash Inflow from operating activities Required 2 Required 3
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