Show Me How Cash flows from (used for) operating activities-indirect method The net income reported on the income statement for the current year was $123,400. Depreciation recorded on store equipment for the year amounted to $20,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Chapter 14 Homework eBook Cash Accounts receivable (net) $49,480 $45,520 35,480 33,640 Inventories 48,440 51,210 Prepaid expenses 5,440 4,320 Accounts payable (merchandise creditors) Wages payable 46,360 43,060 25,330 28,130 a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flows from operating activities Feedback Check My Work Amount Amount 123.400 20,400 00000 ☐
Show Me How Cash flows from (used for) operating activities-indirect method The net income reported on the income statement for the current year was $123,400. Depreciation recorded on store equipment for the year amounted to $20,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Chapter 14 Homework eBook Cash Accounts receivable (net) $49,480 $45,520 35,480 33,640 Inventories 48,440 51,210 Prepaid expenses 5,440 4,320 Accounts payable (merchandise creditors) Wages payable 46,360 43,060 25,330 28,130 a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flows from operating activities Feedback Check My Work Amount Amount 123.400 20,400 00000 ☐
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash flows from (used for) operating activities-indirect method
The net income reported on the income statement for the current year was $123,400. Depreciation recorded on store equipment for the year amounted to $20,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year Beginning of Year
Chapter 14 Homework
eBook
Cash
Accounts receivable (net)
$49,480
$45,520
35,480
33,640
Inventories
48,440
51,210
Prepaid expenses
5,440
4,320
Accounts payable (merchandise creditors)
Wages payable
46,360
43,060
25,330
28,130
a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial)
Line Item Description
Cash flows from (used for) operating activities:
Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Depreciation
Changes in current operating assets and liabilities:
Increase in accounts receivable
Decrease in inventories
Increase in prepaid expenses
Increase in accounts payable
Decrease in wages payable
Net cash flows from operating activities
Feedback
Check My Work
Amount
Amount
123.400
20,400
00000
☐
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