Required: Prepare the operating activities section of the statement of cash flows using the indirect method.
Required: Prepare the operating activities section of the statement of cash flows using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Hampton Company reports the following information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
$ 77,000
Inventory decrease
41,000 Salaries payable increase
12,000
4,000
$ 20,000
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$ 5,000
5,000
900
Changes in current operating assets and liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6d23100-90a1-4a93-916a-7461a2ad92d2%2Fa9e1ecb9-5f8e-40c7-81bd-55e372e51cff%2Fr6pfsu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hampton Company reports the following information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
$ 77,000
Inventory decrease
41,000 Salaries payable increase
12,000
4,000
$ 20,000
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$ 5,000
5,000
900
Changes in current operating assets and liabilities
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