Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Decrease Inventory Increase. Salaries and Wages Payable Increase GUY'S GEAR COMPANY Cash Flows from Operating Activities-Indirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities $50,000 6,000 12,000 Changes in Current Assets and Current Liabilities $ 4,000 8,000 750 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) $ 80,000 68,000 $ 12,000

Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Decrease Inventory Increase. Salaries and Wages Payable Increase GUY'S GEAR COMPANY Cash Flows from Operating Activities-Indirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities $50,000 6,000 12,000 Changes in Current Assets and Current Liabilities $ 4,000 8,000 750 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) $ 80,000 68,000 $ 12,000

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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