Explanation The cash provided and used in operating activities shall be computed by taking the net income during the period first. Then the net income shall be adjusted for the non-operating expense and non-cash expense by adding these items in the net income. Likewise, the non-operating incomes shall be deducted from the above resultant figure. The change in operating assets and liabilities shall be adjusted in the net income (adjusted for above expense and incomes) for arriving at the cash provided from/ cash used in operating activities...

Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)

12th Edition

ISBN: 9780134491509

Author: MILLER-NOBLES, Tracie L., Mattison, Brenda L., Matsumura, Ella Mae

Publisher: PEARSON

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Question

Chapter 16, Problem E16.20E

To determine

Determination of net cash provided/used from the operating activities under indirect method describes the steps for computation of cash provided/ used from operating activities. The Operating activities are the activities relating to the main business of the company and cash generation from such business activities to be determined using indirect method.

The cash generation or used form operating activities need to be determined under indirect method.

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Chapter 16 Solutions

Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)

Ch. 16 - Prob. 1QC Ch. 16 - Prob. 2QC Ch. 16 - Prob. 3QC Ch. 16 - Prob. 4QC Ch. 16 - Prob. 5QC Ch. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QC Ch. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC

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