Use the following data to prepare a statement of cash flows for the year ended December 31 using the indirect method.Cash balance at prior year-endIncrease in wages payableDepreciation expenseGain on sale of equipmentNet incomeCash received from issuing stockCash received from sale of equipmentCash paid for dividendsIncrease in prepaid expensesDecrease in accounts receivable$ 10,0005001,0006006,6003,6003,9004003,000800 Statement of Cash Flows (Indirect Method)For Current Year Ended December 31Cash flows from operating activitiesAdjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cashChanges in current operating assets and liabilitiesCash flows from investing activitiesCash flows from financing activities

A cash flow statement may be prepared using the indirect method. The indirect method uses the change…

Use the following data to prepare a statement of cash flows for the year ended December 31 using the indirect method. $ 10,000 Cash balance at prior year-end Increase in wages payable Depreciation expense 500 1,000 600 Gain on sale of equipment Net income 6,600 3,600 Cash received from issuing stock Cash received from sale of equipment Cash paid for dividends 3,900 400 3,000 800 Increase in prepaid expenses Decrease in accounts receivable

Use the following data to prepare a statement of cash flows for the year ended December 31 using the indirect method. $ 10,000 Cash balance at prior year-end Increase in wages payable Depreciation expense 500 1,000 600 Gain on sale of equipment Net income 6,600 3,600 Cash received from issuing stock Cash received from sale of equipment Cash paid for dividends 3,900 400 3,000 800 Increase in prepaid expenses Decrease in accounts receivable

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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