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.
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.
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.
| End of Year | Beginning of Year | |||
| Cash | $46,410 | $42,230 | ||
| 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 “
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