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Incorporated reports net income of $16,200. Its comparative balance sheet shows the following changes: accounts receivable increased $7,200; inventory decreased $9,200; prepaid insurance decreased $2,200; accounts payable increased $4,200; and taxes payable decreased $3,200. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Incorporated reports net income of $16,200. Its comparative balance sheet shows the following changes: accounts receivable increased $7,200; inventory decreased $9,200; prepaid insurance decreased $2,200; accounts payable increased $4,200; and taxes payable decreased $3,200. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

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
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 5RE: In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts...
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Cain Incorporated reports net income of $16,200. Its comparative balance sheet shows the following changes: accounts receivable increased $7,200; inventory decreased $9,200; prepaid insurance decreased $2,200; accounts payable increased $4,200; and taxes payable decreased $3,200. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

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