The net income reported on the income statement for the current year was $278,260. Depreciation recorded on fixed assets and amortization of patents for the year were$34,649, and $11,472, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:CashAccounts receivableInventoriesEnda. $370,545b. $208,919c. $347,601Od. $278,217$47,146124,126102,6014,50645,924Beginning$57,260104,23693,9327,91466,937Prepaid expensesAccounts payable (merchandise creditors)What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Increase in Accounts receivable = 124,126 - 104,236 = 19,890 Increase in Inventories = 102,601 -…

The net income reported on the income statement for the current year was $278,260. Depreciation recorded on fixed assets and amortization of patents for the year were $34,649, and $11,472, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: Beginning $57,260 Accounts receivable 104,236 Inventories 93,932 Prepaid expenses 7,914 Accounts payable (merchandise creditors) 66,937 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Cash Oa. $370,545 Ob. $208,919 OC. $347,601 Od. $278,217 End $47,146 124,126 102,601 4,506 45,924

The net income reported on the income statement for the current year was $278,260. Depreciation recorded on fixed assets and amortization of patents for the year were $34,649, and $11,472, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: Beginning $57,260 Accounts receivable 104,236 Inventories 93,932 Prepaid expenses 7,914 Accounts payable (merchandise creditors) 66,937 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Cash Oa. $370,545 Ob. $208,919 OC. $347,601 Od. $278,217 End $47,146 124,126 102,601 4,506 45,924

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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