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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: Account Title Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue Year 2 $ 31,215 Year 1 $ 37,458 1,837 1,607 663 530 10,053 12,064 3,182 3,071 3,637 4,095 The income statement reported a $1,140 gain on the sale of equipment, an $940 loss on the sale of land, and $3,100 of depreciation expense. Net income for the period was $53,152. Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities: Net income Plus: Depreciation expense Loss on sale of land Decrease in accounts receivable Less: Increase in prepaid rent Increase in interest receivable Decrease in accounts payable Decrease in salaries payable Decrease in unearned revenue Gain on sale of equipment Net cash flow from operating activities $ 0

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 Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue Year 2 $ 31,215 Year 1 $ 37,458 1,837 1,607 663 530 10,053 12,064 3,182 3,071 3,637 4,095 The income statement reported a $1,140 gain on the sale of equipment, an $940 loss on the sale of land, and $3,100 of depreciation expense. Net income for the period was $53,152. Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities: Net income Plus: Depreciation expense Loss on sale of land Decrease in accounts receivable Less: Increase in prepaid rent Increase in interest receivable Decrease in accounts payable Decrease in salaries payable Decrease in unearned revenue Gain on sale of equipment Net cash flow from operating activities $ 0

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Internal Control And Cash
Section: Chapter Questions
Problem 5PEB
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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: Account Title Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue Year 2 $ 31,215 Year 1 $ 37,458 1,837 1,607 663 530 10,053 12,064 3,182 3,071 3,637 4,095 The income statement reported a $1,140 gain on the sale of equipment, an $940 loss on the sale of land, and $3,100 of depreciation expense. Net income for the period was $53,152. Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities: Net income Plus: Depreciation expense Loss on sale of land Decrease in accounts receivable Less: Increase in prepaid rent Increase in interest receivable Decrease in accounts payable Decrease in salaries payable Decrease in unearned revenue Gain on sale of equipment Net cash flow from operating activities $ 0
Transcribed Image Text: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 Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue Year 2 $ 31,215 Year 1 $ 37,458 1,837 1,607 663 530 10,053 12,064 3,182 3,071 3,637 4,095 The income statement reported a $1,140 gain on the sale of equipment, an $940 loss on the sale of land, and $3,100 of depreciation expense. Net income for the period was $53,152. Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities: Net income Plus: Depreciation expense Loss on sale of land Decrease in accounts receivable Less: Increase in prepaid rent Increase in interest receivable Decrease in accounts payable Decrease in salaries payable Decrease in unearned revenue Gain on sale of equipment Net cash flow from operating activities $ 0
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