Chapter 23A, Problem 6SPB

COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Company’s condensed income statement for the year ended December 31, 20-2, was as follows:

Additional information obtained from Horn’s comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows:

Depreciation expense for 20-2, included in operating expenses on the income statement, was $32,000.

REQUIRED

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.

SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-11B for Powell Company, prepare the following:

1. A schedule for the calculation of cash generated from operating activities for Powell Company for the year ended December 31, 20-2.

2. A partial statement of cash flows for Powell Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.