The net income reported on the income statement for the current year was $306,549. Depreciation recorded on fixed assets and amortization of patents for the year were $43,372 and $9,945, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: EndBeginningCash$36,479$53,540Accounts Receivable124,484100,237Inventories106,32286,361Prepaid Expenses4,9338,482Accounts Payable (merchandise creditors)49,96172,899 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Cash Flow Statement(CFS) shows sources and application of Cash and its equivalents in a systematic…

Answered: The net income reported on the income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The net income reported on the income statement for the current year was $306,549. Depreciation recorded on fixed assets and amortization of patents for the year were $43,372 and $9,945, 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	$36,479	$53,540
Accounts Receivable	124,484	100,237
Inventories	106,322	86,361
Prepaid Expenses	4,933	8,482
Accounts Payable (merchandise creditors)	49,961	72,899

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

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