ear amounted to $21,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $51,270 $47,170 Accounts receivable (net) 36,760 34,860 Merchandise inventory 50,190 53,070 Prepaid expenses 5,640 4,480 Accounts payable (merchandise creditors) 48,040 44,620 Wages payable 26,250 29,150 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $fill in the blank 7e3d0afa507ffb9_2 Adjustments to reconcile net income to net cash flow from operating activities: fill in the blank 7e3d0afa507ffb9_4 Changes in current operating assets and liabilities: fill in the blank 7e3d0afa507ffb9_6 fill in the blank 7e3d0afa507ffb9_8 fill in the blank 7e3d0afa507ffb9_10 fill in the blank 7e3d0afa507ffb9_12 fill in the blank 7e3d0afa507ffb9_14 Net cash flow from operating activities $fill in the blank 7e3d0afa507ffb9_15 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 2PB: The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

ear amounted to $21,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

	End of Year	Beginning of Year
Cash	$51,270		$47,170
Accounts receivable (net)	36,760		34,860
Merchandise inventory	50,190		53,070
Prepaid expenses	5,640		4,480
Accounts payable (merchandise creditors)	48,040		44,620
Wages payable	26,250		29,150

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.


Statement of Cash Flows (partial)

Cash flows from operating activities:
	$fill in the blank 7e3d0afa507ffb9_2
Adjustments to reconcile net income to net cash flow from operating activities:
	fill in the blank 7e3d0afa507ffb9_4
Changes in current operating assets and liabilities:
	fill in the blank 7e3d0afa507ffb9_6
	fill in the blank 7e3d0afa507ffb9_8
	fill in the blank 7e3d0afa507ffb9_10
	fill in the blank 7e3d0afa507ffb9_12
	fill in the blank 7e3d0afa507ffb9_14
Net cash flow from operating activities		$fill in the blank 7e3d0afa507ffb9_15

b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions