Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities: Increases in *noncash current operating assets (XXX) Decreases in **noncash current operating assets XXX Increases in **current operating liabilities XXX Decreases in *current operating liabilities (XXX) *SUBTRACT **ADD Increases in accounts receivable Decreases in accounts receivable Increases in inventory Decreases in inventory Increases in prepaid expenses Decreases in prepaid expenses Decreases in accounts payable Increases in accounts payable Decreases in accrued expenses payable Increases in accrued expenses payable Group of answer choices Deduct: Increase in Accounts Payable of $5,000 Add: Increase in Accounts Payable of $5,000 Deduct: Increase in Accounts Payable of $75,000 Add: Increase in Accounts Payable of $75,000
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of
EXHIBIT
Increase
(Decrease)
Net Income (loss) $XXX
Adjustments to reconcile net income to net cash flow
from operating activities:
Losses on disposal of assets XXX
Gains on disposal of assets (XXX)
Changes in current operating assets and liabilities:
Increases in *noncash current operating assets (XXX)
Decreases in **noncash current operating assets XXX
Increases in **current operating liabilities XXX
Decreases in *current operating liabilities (XXX)
*SUBTRACT **ADD
Increases in
Increases in inventory Decreases in inventory
Increases in prepaid expenses Decreases in prepaid expenses
Decreases in accounts payable Increases in accounts payable
Decreases in accrued expenses payable Increases in accrued expenses payable
Deduct: Increase in Accounts Payable of $75,000
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