The following information pertains to Guy's Gear Company: Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Decrease Inventory Increase Salaries and Wages Payable Increase $48,500 5,700 11,700 $ 3,700 7,700 720 $77,000 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Adjustments to Reconcile Net Income to Cash Provided by Operating Activities 65,900 $11,100 GUY'S GEAR COMPANY Cash Flow from Operating Activities-Indirect Method Changes in Current Assets and Current Liabilities
The following information pertains to Guy's Gear Company: Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Decrease Inventory Increase Salaries and Wages Payable Increase $48,500 5,700 11,700 $ 3,700 7,700 720 $77,000 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Adjustments to Reconcile Net Income to Cash Provided by Operating Activities 65,900 $11,100 GUY'S GEAR COMPANY Cash Flow from Operating Activities-Indirect Method Changes in Current Assets and Current Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information pertains to Guy's Gear Company:
Sales
Expenses:
Cost of Goods Sold
Depreciation Expense
Salaries and Wages Expense
Net Income
Accounts Receivable Decrease
Inventory Increase
Salaries and Wages Payable Increase
$48,500
5,700
11,700
$ 3,700
7,700
720
$77,000
Required:
Present the operating activities section of the statement of cash flows for Guy's Gear Company using the
indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Adjustments to Reconcile Net Income to Cash
Provided by Operating Activities
65,900
$11,100
GUY'S GEAR COMPANY
Cash Flow from Operating Activities-Indirect Method
Changes in Current Assets and Current Liabilities
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