The net income reported on the income statement for the current year was $122,100. Depreciation recorded on store equipment for the year amounted to $20,100. 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 $47,010 $42,780 Accounts receivable (net) 33,710 31,610 Merchandise inventory 46,020 48,130 Prepaid expenses 5,170 4,060 Accounts payable (merchandise creditors) 44,050 40,470 Wages payable 24,070 26,440 Question Content Area 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.
The net income reported on the income statement for the current year was $122,100. Depreciation recorded on store equipment for the year amounted to $20,100. 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 $47,010 $42,780 Accounts receivable (net) 33,710 31,610 Merchandise inventory 46,020 48,130 Prepaid expenses 5,170 4,060 Accounts payable (merchandise creditors) 44,050 40,470 Wages payable 24,070 26,440 Question Content Area 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The net income reported on the income statement for the current year was $122,100.
| End of Year |
Beginning of Year |
|||
| Cash | $47,010 | $42,780 | ||
| 33,710 | 31,610 | |||
| Merchandise inventory | 46,020 | 48,130 | ||
| Prepaid expenses | 5,170 | 4,060 | ||
| Accounts payable (merchandise creditors) | 44,050 | 40,470 | ||
| Wages payable | 24,070 | 26,440 |
Question Content Area
a. Prepare the
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Step 1 Introduction
The question is based on the concept of Cash flow statement.
Cash flow statement is the statement that shows the flow of cash of an entity through operating, investing and financing activity.
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