Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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Demers Inc. reported the following data:
Net income $490,000
Depreciation expense 52,000
Gain on disposal of equipment 26,500
Decrease in accounts receivable 32,400
Decrease in accounts payable 12,350
 
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, and for any adjustments, if required.
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