The net income reported on the income statement for the current year was $259,600. Depreciation recorded on equipment and a building amounted to $77,600 for the year. 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 $66,980   $71,000   Accounts receivable (net) 84,930   87,610   Inventories 167,450   150,950   Prepaid expenses 9,310   10,010   Accounts payable (merchandise creditors) 74,820   79,240   Salaries payable 10,780   9,870   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.  Statement of Cash Flows (partial)  Cash flows from (used for) 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 flows from operating activities   $fill in the blank 9903ef08805a04e_15   Question Content Area b.  If the direct method had been used, would the net cash flow from operating activities have been the same?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Cash Flows from (Used for) Operating Activities

    The net income reported on the income statement for the current year was $259,600. Depreciation recorded on equipment and a building amounted to $77,600 for the year. 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 $66,980   $71,000  
    Accounts receivable (net) 84,930   87,610  
    Inventories 167,450   150,950  
    Prepaid expenses 9,310   10,010  
    Accounts payable (merchandise creditors) 74,820   79,240  
    Salaries payable 10,780   9,870  

    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.

     Statement of Cash Flows (partial) 
    Cash flows from (used for) 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 flows from operating activities   $fill in the blank 9903ef08805a04e_15
     

    Question Content Area

    b.  If the direct method had been used, would the net cash flow from operating activities have been the same?

     
     
     
     
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