The net income reported on the income statement for the current year was $118,100. Depreciation recorded on store equipment for the year amounted to $19,500. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of YearBeginning of YearCash$46,410 $42,230 Accounts receivable (net)33,280 31,210 Inventories45,440 47,510 Prepaid expenses5,110 4,010 Accounts payable (merchandise creditors)43,490 39,950 Wages payable23,760 26,100 a. Prepare the “Cash flows from 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.

Cash flows refers to the cash inflow or outflow from the business. For example sale of assets is…

Answered: The net income reported on the income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The net income reported on the income statement for the current year was $118,100. Depreciation recorded on store equipment for the year amounted to $19,500. 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
Cash	$46,410		$42,230
Accounts receivable (net)	33,280		31,210
Inventories	45,440		47,510
Prepaid expenses	5,110		4,010
Accounts payable (merchandise creditors)	43,490		39,950
Wages payable	23,760		26,100

a. Prepare the “Cash flows from 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.

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