Riverside Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement: Sales revenue $140,000 Interest revenue 5,000 Loss on sale of plant assets (4,000) Total revenues and (losses) $141,000 Cost of goods sold 100,000 Salary expense 23,000 Depreciation expense 8,000 Other operating expenses 9,000 Interest expense 2,000 Income tax expense 5,000 Total expenses $147,000 Net income/(loss) $ (6,000) Other information provided: • Current assets other than cash decrease by $4,000. • Current liabilities increase by $1,000. Based on the info provided which of the following is the correct narrative and ending balance in the operating activities section of the company’s statement of cash flows: a. Net cash used for operating activities $5,000 b. Net cash provided by operating activities $11,000 c. Net cash provided by operating activities $23,000 d. Net cash used for operating activities $7,000
Riverside Company uses the indirect method to prepare the statement of
|
Sales revenue |
$140,000 |
|
|
Interest revenue |
5,000 |
|
|
Loss on sale of plant assets |
(4,000) |
|
|
Total revenues and (losses) |
|
$141,000 |
|
Cost of goods sold |
100,000 |
|
|
Salary expense |
23,000 |
|
|
|
8,000 |
|
|
Other operating expenses |
9,000 |
|
|
Interest expense |
2,000 |
|
|
Income tax expense |
5,000 |
|
|
Total expenses |
|
$147,000 |
|
Net income/(loss) |
|
$ (6,000) |
Other information provided:
• Current assets other than cash decrease by $4,000.
• Current liabilities increase by $1,000.
Based on the info provided which of the following is the correct narrative and ending balance in the operating activities section of the company’s statement of cash flows:
Net cash used for operating activities $5,000
Net cash provided by operating activities $11,000
Net cash provided by operating activities $23,000
Net cash used for operating activities $7,000
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