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mapter 16 e net income reported on the income statement for the current year was $183,000. Depreciation recorded on equipment and a wilding amounted to $76,500 for the year. Balances of the current asset and current liability accounts at the begining and end of the ar are as follows: End of Year Beginning of Year sh 65,000 54,500 counts receivable (net) 75,000 72,500 ventories 175,600 165,500 epaid Expenses 8,500 9,200 75,450 counts Payable (merchandise creditors) laries Payable I 70,650 8,600 11,500 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain. $ $

mapter 16 e net income reported on the income statement for the current year was $183,000. Depreciation recorded on equipment and a wilding amounted to $76,500 for the year. Balances of the current asset and current liability accounts at the begining and end of the ar are as follows: End of Year Beginning of Year sh 65,000 54,500 counts receivable (net) 75,000 72,500 ventories 175,600 165,500 epaid Expenses 8,500 9,200 75,450 counts Payable (merchandise creditors) laries Payable I 70,650 8,600 11,500 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain. $ $

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 13.2BE: Adjustments to net incomeindirect method Ripley Corporations accumulated depreciationequipment...
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Chapter 16 The net income reported on the income statement for the current year was $183,000. Depreciation recorded on equipment and al building amounted to $76,500 for the year. 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 65,000 54,500 Accounts receivable (net) 75,000 72,500 Inventories 175,600 165,500 Prepaid Expenses 8,500 9,200 Accounts Payable (merchandise creditors) 75,450 70,650 8,600 Salaries Payable 11,500 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. b. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain. $ $
Transcribed Image Text:Chapter 16 The net income reported on the income statement for the current year was $183,000. Depreciation recorded on equipment and al building amounted to $76,500 for the year. 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 65,000 54,500 Accounts receivable (net) 75,000 72,500 Inventories 175,600 165,500 Prepaid Expenses 8,500 9,200 Accounts Payable (merchandise creditors) 75,450 70,650 8,600 Salaries Payable 11,500 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. b. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain. $ $
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