Homework Help is Here – Start Your Trial Now!
Business
Accounting
The income statement disclosed the following items for the year: Depreciation expense    $  57,600Gain on disposal of equipment    33,600Net income    508,000The changes in the current asset and liability accounts for the year are as follows:      Increase (Decrease)Accounts receivable    $8,960  Inventory    (5,120)Prepaid insurance    (1,920)Accounts payable    (6,080)Income taxes payable    1,410  Dividends payable    2,200  Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method.  Briefly explain why net cash flow from operating activities is different than net income. Check Figure: Net cash flow from operating activities, $525,410

The income statement disclosed the following items for the year: Depreciation expense    $  57,600Gain on disposal of equipment    33,600Net income    508,000The changes in the current asset and liability accounts for the year are as follows:      Increase (Decrease)Accounts receivable    $8,960  Inventory    (5,120)Prepaid insurance    (1,920)Accounts payable    (6,080)Income taxes payable    1,410  Dividends payable    2,200  Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method.  Briefly explain why net cash flow from operating activities is different than net income. Check Figure: Net cash flow from operating activities, $525,410

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 4SEA
See similar textbooks
icon
Related questions
Question

The income statement disclosed the following items for the year:

Depreciation expense    $  57,600
Gain on disposal of equipment    33,600
Net income    508,000
The changes in the current asset and liability accounts for the year are as follows:

     Increase (Decrease)
Accounts receivable    $8,960  
Inventory    (5,120)
Prepaid insurance    (1,920)
Accounts payable    (6,080)
Income taxes payable    1,410  
Dividends payable    2,200  
Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method.

 Briefly explain why net cash flow from operating activities is different than net income.


Check Figure: Net cash flow from operating activities, $525,410

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
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SEE MORE TEXTBOOKS