Use the following information to perform the calculations below (using the indirect method). Net income $400,000 Beginning accounts payable $122,000 Depreciation expense 91,000 Ending accounts payable 145,000 Beginning accounts receivable 429,000 Purchase of long-term assets 754,000 Ending accounts receivable 433,000 Issuance of long-term debt 264,000 Beginning inventory 514,000 Issuance of stock for cash 167,000 Ending inventory 578,000 Issuance of stock for long-term assets 105,000 Beginning prepaid insurance 40,700 Purchase of treasury stock 64,500 Ending prepaid insurance 46,400 Sale of long-term investment at cost 54,500 (a) Calculate the amount of cash flows from operating activities. (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flows from operating activities $
Use the following information to perform the calculations below (using the indirect method). Net income $400,000 Beginning accounts payable $122,000 Depreciation expense 91,000 Ending accounts payable 145,000 Beginning accounts receivable 429,000 Purchase of long-term assets 754,000 Ending accounts receivable 433,000 Issuance of long-term debt 264,000 Beginning inventory 514,000 Issuance of stock for cash 167,000 Ending inventory 578,000 Issuance of stock for long-term assets 105,000 Beginning prepaid insurance 40,700 Purchase of treasury stock 64,500 Ending prepaid insurance 46,400 Sale of long-term investment at cost 54,500 (a) Calculate the amount of cash flows from operating activities. (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flows from operating activities $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A6
Transcribed Image Text:Use the following information to perform the calculations below (using the indirect method).
Net income
$400,000
Beginning accounts payable
$122,000
Depreciation expense
91,000
Ending accounts payable
145,000
Beginning accounts receivable
429,000
Purchase of long-term assets
754,000
Ending accounts receivable
433,000
Issuance of long-term debt
264,000
Beginning inventory
514,000
Issuance of stock for cash
167,000
Ending inventory
578,000
Issuance of stock for long-term assets
105,000
Beginning prepaid insurance
40,700
Purchase of treasury stock
64,500
Ending prepaid insurance
46,400
Sale of long-term investment at cost
54,500
(a)
Calculate the amount of cash flows from operating activities. (Show amount that decrease cash flow with either a - sign e.g.
-15,000 or in parenthesis e.g. (15,000).)
Cash flows from operating activities
$
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