The net income reported on the income statement for the current year was $311,700. Depreciation recorded on equipment and a building amounted to $93,200 for the year. 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 $78,550 $83,260 Accounts receivable (net) 99,600 102,740 Inventories 196,380 177,010 Prepaid expenses 10,920 11,740 Accounts payable (merchandise creditors) 87,740 92,920 Salaries payable 12,650 11,570 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. blankblankStatement of Cash Flows (partial) 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: Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable $Net cash flows from operating activities
The net income reported on the income statement for the current year was $311,700. Depreciation recorded on equipment and a building amounted to $93,200 for the year. 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 $78,550 $83,260 Accounts receivable (net) 99,600 102,740 Inventories 196,380 177,010 Prepaid expenses 10,920 11,740 Accounts payable (merchandise creditors) 87,740 92,920 Salaries payable 12,650 11,570 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. blankblankStatement of Cash Flows (partial) 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: Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable $Net cash flows from operating activities
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 7CPA: Which statement below is correct? a. Real property is depreciated using the half-year convention. b....
Related questions
Question
The net income reported on the income statement for the current year was $311,700.
Line Item Description | End of Year | Beginning of Year |
---|---|---|
Cash | $78,550 | $83,260 |
99,600 | 102,740 | |
Inventories | 196,380 | 177,010 |
Prepaid expenses | 10,920 | 11,740 |
Accounts payable (merchandise creditors) | 87,740 | 92,920 |
Salaries payable | 12,650 | 11,570 |
Question Content Area
a. Prepare the "
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: | ||
|
Decrease in accounts receivable | |
|
Increase in inventories | |
|
Decrease in prepaid expenses | |
|
Decrease in accounts payable | |
|
Increase in salaries payable | |
|
$Net cash flows from operating activities |
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