Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balanceswere drawn from Shim's Year 2 and Year 1 year-end balance sheets.Account TitleYear 2Year 1$31,2971,496249Accounts receivable$37,556Prepaid rent1,309Interest receivableAccounts payableSalaries payable19910,5372,9303,21512,6443,348Unearned revenue4,287The income statement reported a $1,170 gain on the sale of equipment, an $750 loss on the sale of land, and $3,700 of depreciationexpense. Net income for the period was $53,353.RequiredPrepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minussign.)Cash flows from operating activities:Plus:Less:Net cash flow from operating activities

Introduction:- The following formula used to calculate cash flows from operating activities as…

Answered: Required Prepare the operating…

Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: Plus: Less:

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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Question

Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances
were drawn from Shim's Year 2 and Year 1 year-end balance sheets.
Account Title
Year 2
Year 1
$31,297
1,496
249
Accounts receivable
$37,556
Prepaid rent
1,309
Interest receivable
Accounts payable
Salaries payable
199
10,537
2,930
3,215
12,644
3,348
Unearned revenue
4,287
The income statement reported a $1,170 gain on the sale of equipment, an $750 loss on the sale of land, and $3,700 of depreciation
expense. Net income for the period was $53,353.
Required
Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus
sign.)
Cash flows from operating activities:
Plus:
Less:
Net cash flow from operating activities

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Provide iand Create nformation needed to create a Statement of Cash Flows using the Indirect Method. You MUST include: Net Income At least 3 items that go under operating activities. At least 2 items that go under investing activities. At least 2 items that go under financing activities. And 1 non-cash transaction.
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