Homework Help is Here – Start Your Trial Now!
Business
Accounting
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: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.9E
See similar textbooks
icon
Related questions
Question
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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS