The two independent cases are listed below:Sales RevenueCost of Goods SoldGross ProfitDepreciation ExpenseSalaries and Wages ExpenseNet IncomeAccounts ReceivableInventoryAccounts PayableSalaries and Wages PayableAdjustments to Reconcile Net Income to Net CashProvided by Operating ActivitiesChanges in Assets and Liabilities$CaseYear 2$ 10,1005,1904,9101,1001,600$ 2,210Case A$ 255705710955A0 $Year 1$ 4,5001,9002,6001,1001,100$ 400$ 3104106551,110Required:Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be dshould be indicated with a minus sign.)Case BCaseYear 2$ 20,10011,1908,9101,0504,100$ 3,7600$ 660685890385BYear 1$ 13,5007,7205,7801,0504,100$ 630$ 555710945440

Cash flow may be computed using the indirect approach by changing net income by either adding or…

The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable Case A Year 2 $ 10,100 5,190 4,910 1,100 1,600 $ 2,210 $ 255 705 710 955 Year 1 $ 4,500 1,900 2,600 1,100 1,100 $ 400 $ 310 410 655 1,110 Case B Year 2 $ 20,100 11,190 8,910 1,050 4,100 $ 3,760 $ 660 685 890 385 Year 1 $ 13,500 7,720 5,780 1,050 4,100 $ 630 $ 555 710 945 440 Required: Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be should be indicated with a minus sign.)

The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable Case A Year 2 $ 10,100 5,190 4,910 1,100 1,600 $ 2,210 $ 255 705 710 955 Year 1 $ 4,500 1,900 2,600 1,100 1,100 $ 400 $ 310 410 655 1,110 Case B Year 2 $ 20,100 11,190 8,910 1,050 4,100 $ 3,760 $ 660 685 890 385 Year 1 $ 13,500 7,720 5,780 1,050 4,100 $ 630 $ 555 710 945 440 Required: Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be should be indicated with a minus sign.)

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 2FIC

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