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

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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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