3. The net income reported on the income statement for the current year was $304,374. Depreciation recorded on fixed assets and amortization of patents for the year were $32,397 and $8,545, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: EndBeginningCash$37,946$53,537Accounts Receivable124,179105,179Inventories113,95187,274Prepaid Expenses3,3308,740Accounts Payable (merchandise creditors)50,53572,784What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?a.$282,800b.$365,298c.$299,639d.$279,858

Cash flow from operating activities indicates the cash inflow and cash outflow from operations.

Answered: The net income reported on the income…

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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3. The net income reported on the income statement for the current year was $304,374. Depreciation recorded on fixed assets and amortization of patents for the year were $32,397 and $8,545, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$37,946	$53,537
Accounts Receivable	124,179	105,179
Inventories	113,951	87,274
Prepaid Expenses	3,330	8,740
Accounts Payable (merchandise creditors)	50,535	72,784