Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income $ 71,000 Accounts receivable increase Selected Year-End Balance Sheet Data Inventory decrease $ 7,000 2,000 900 40,000 Salaries payable increase 12,000 4,000 $ 15,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income $ 71,000 Accounts receivable increase Selected Year-End Balance Sheet Data Inventory decrease $ 7,000 2,000 900 40,000 Salaries payable increase 12,000 4,000 $ 15,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am.123.
Transcribed Image Text:Hampton Company reports the following information for its recent calendar year.
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
$ 71,000 Accounts receivable increase
Selected Year-End Balance Sheet Data
Inventory decrease
$ 7,000
2,000
900
40,000 Salaries payable increase
12,000
4,000
$ 15,000
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
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