Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows: Income statement data: Line Item Description Amount Net income $49,265 Gain on disposal of property 1,140 Depreciation expense 11,570 Other items involving noncash expenses 1,425 Balance sheet data: Line Item Description Amount Increase in accounts receivable 1,795 Decrease in inventory 1,030 Increase in prepaid expenses 605 Decrease in accounts payable 720 Decrease in accrued and other current liabilities 965 Question Content Area a. Prepare the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. Cardinas Corp.Cash Flows from Operating Activities(in thousands) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income blank Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable blank Decrease in accrued and other current liabilities $Net cash flows from operating activities

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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Line Item Description	Amount
Net income	$49,265
Gain on disposal of property	1,140
Depreciation expense	11,570
Other items involving noncash expenses	1,425

Line Item Description	Amount
Increase in accounts receivable	1,795
Decrease in inventory	1,030
Increase in prepaid expenses	605
Decrease in accounts payable	720
Decrease in accrued and other current liabilities	965

Question Content Area

a. Prepare the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above.

Cardinas Corp.Cash Flows from Operating Activities(in thousands)

Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:
	$Net income	blank
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	Depreciation
	Gain on disposal of property
	Other items involving noncash expenses
Changes in current operating assets and liabilities:
	Increase in accounts receivable
	Decrease in inventory
	Increase in prepaid expenses
	Decrease in accounts payable	blank
	Decrease in accrued and other current liabilities
		$Net cash flows from operating activities