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Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś

Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 9E: Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone...
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Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. $
Transcribed Image Text:Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. $
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