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.  (see below). The income statement reported a $2,280 gain on the sale of equipment, an $810 loss on the sale of land, and $4,200 of depreciation expense. Net income for the period was $45,800. Requirements: Prepare the operating activities section of the statement of cash flows. Account   Year 2 Year 1  Accounts Receivable       31,200.00    35,000.00  Prepaid Rent            1,453.00      1,100.00  Interest Receivable             650.00         600.00  Accounts Payable            9,876.00    12,200.00  Salaries Payable            2,625.00      2,000.00  Unearned Revenue          3,237.00      4,470.00         Shim Company   Cash from Operating Activities

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.  (see below).

The income statement reported a $2,280 gain on the sale of equipment, an $810 loss on the sale of land, and $4,200 of depreciation expense. Net income for the period was $45,800.

Requirements:

Prepare the operating activities section of the statement of cash flows.

Account   Year 2 Year 1
 Accounts Receivable       31,200.00    35,000.00
 Prepaid Rent            1,453.00      1,100.00
 Interest Receivable             650.00         600.00
 Accounts Payable            9,876.00    12,200.00
 Salaries Payable            2,625.00      2,000.00
 Unearned Revenue          3,237.00      4,470.00
       
Shim Company  
Cash from Operating Activities  
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       

 

Account
Accounts Receivable
Prepaid Rent
Interest Receivable
Accounts Payable
Salaries Payable
Unearned Revenue
Year 2
Year 1
31,200.00
35,000.00
1,453.00 1,100.00
650.00
600.00
9,876.00
12,200.00
2,625.00
2,000.00
3,237.00 4,470.00
Shim Company
Cash from Operating Activities
Transcribed Image Text:Account Accounts Receivable Prepaid Rent Interest Receivable Accounts Payable Salaries Payable Unearned Revenue Year 2 Year 1 31,200.00 35,000.00 1,453.00 1,100.00 650.00 600.00 9,876.00 12,200.00 2,625.00 2,000.00 3,237.00 4,470.00 Shim Company Cash from Operating Activities
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