The net income reported on the income statement for the current year was $132,100. Depreciation recorded on store equipment for the year amounted to $21,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $51,250 $46,640 Accounts receivable (net) 36,750 34,470 Merchandise inventory 50,170 52,470 Prepaid expenses 5,640 4,430 Accounts payable (merchandise creditors) 48,020 44,120 Wages payable 26,240 28,820 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. blankStatement of Cash Flows (partial)blank Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - Changes in current operating assets and liabilities: - Select - - Select - - Select - - Select - - Select - Net cash flow from operating activities $fill in the blank 47802e01e026008_15 b. Cash flows from operating activities differ from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The net income reported on the income statement for the current year was $132,100. Depreciation recorded on store equipment for the year amounted to $21,800. 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	$51,250		$46,640
Accounts receivable (net)	36,750		34,470
Merchandise inventory	50,170		52,470
Prepaid expenses	5,640		4,430
Accounts payable (merchandise creditors)	48,020		44,120
Wages payable	26,240		28,820

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.

blankStatement of Cash Flows (partial)blank

Cash flows from operating activities:
	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	- Select -
Changes in current operating assets and liabilities:
	- Select -
	- Select -
	- Select -
	- Select -
	- Select -
Net cash flow from operating activities		$fill in the blank 47802e01e026008_15