The net income reported on the income statement for the current year was P255,800. Depreciation recorded on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the year Beginning of the yearCash P 42,000 P 44,200Accounts receivable (net) 56,400 67,000Inventories 125,900 112,600Prepaid expenses 5,800 6,000Accounts payable (merchandise creditors) 61,400 67,500Salaries payable 8,300 7,900Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method. Page 1 of 3Problem 2: Cash Flow StatementThe net income reported on the income statement for the current year was P255,800. Depreciationrecorded on equipment and a building amounted to P53,500 for the year. Balances of the currentasset and current liability accounts at the beginning and end of the year are as follows:End of the yearBeginning of theyearCashP 42,000P 44,200Accounts receivable (net)56,40067,000Inventories125,900112,600Prepaid expenses5,8006,00061,40067,500Accounts payable (merchandisecreditors)Salaries payable8,3007,900Required: Prepare the cash flows from operating activities section of the statement of cash flows,using the indirect method.

A cash flow statement is a financial statement that provides aggregate data regarding all cash…

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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The net income reported on the income statement for the current year was P255,800. Depreciation recorded on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the year Beginning of the year Cash P 42,000 P 44,200 Accounts receivable (net) 56,400 67,000 Inventories 125,900 112,600 Prepaid expenses 5,800 6,000 Accounts payable (merchandise creditors) 61,400 67,500 Salaries payable 8,300 7,900 Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.

Page 1 of 3
Problem 2: Cash Flow Statement
The net income reported on the income statement for the current year was P255,800. Depreciation
recorded on equipment and a building amounted to P53,500 for the year. Balances of the current
asset and current liability accounts at the beginning and end of the year are as follows:
End of the year
Beginning of the
year
Cash
P 42,000
P 44,200
Accounts receivable (net)
56,400
67,000
Inventories
125,900
112,600
Prepaid expenses
5,800
6,000
61,400
67,500
Accounts payable (merchandise
creditors)
Salaries payable
8,300
7,900
Required: Prepare the cash flows from operating activities section of the statement of cash flows,
using the indirect method.

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