Prepare the operating activities section of the statement of cash flows using the indirect method. When completed correctly, there will be one blank row above the Net cash flows from operating activities row. (Amounts to be deducted and negative values should be indicated by minus sign.)

Prepare the operating activities section of the statement of cash flows using the indirect method. When completed correctly, there will be one blank row above the Net cash flows from operating activities row. (Amounts to be deducted and negative values should be indicated by minus sign.)

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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Question

A company reports the following:
Net income of $96,200
Depreciation Expense of $52,000
Increase in Prepaid Rent of $38,800
Increase in Accounts Payable of $23,900
Increase in Income Tax Payable of $20,800
Prepare the operating activities section of the statement of cash flows using the indirect method.
When completed correctly, there will be one blank row above the Net cash flows from operating
activities row. (Amounts to be deducted and negative values should be indicated by minus
sign.)
A Company
Statement of Cash Flows (partial)
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash
flows from operating activities
Net cash flows from operating activities

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