The net income reported on the income statement for the current year was $152,300. Depreciation recorded on store equipment for the year amounted to $25,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Line Item Description End of Year Beginning of Year Cash $61,530 $55,990 Accounts receivable (net) 44,120 41,380 Inventories 60,240 62,990 Prepaid expenses 6,770 5,320 Accounts payable (merchandise creditors) 57,650 52,970 Wages payable 31,500 34,600 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. blankblank Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable $Net cash flows from operating activities

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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Line Item Description	End of Year	Beginning of Year
Cash	$61,530	$55,990
Accounts receivable (net)	44,120	41,380
Inventories	60,240	62,990
Prepaid expenses	6,770	5,320
Accounts payable (merchandise creditors)	57,650	52,970
Wages payable	31,500	34,600

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.

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Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:
	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	Depreciation
Changes in current operating assets and liabilities:
	Increase in accounts receivable
	Decrease in inventories
	Increase in prepaid expenses
	Increase in accounts payable
	Decrease in wages payable
		$Net cash flows from operating activities