QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) + Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 0
QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) + Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 0
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.6.2P
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![QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2
Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of
$3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the
indirect method.
Note: Amounts to be deducted should be indicated by a minus sign.
Cash Flows from Operating Activities (Indirect)
+
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4ff13d4-2da0-4aa7-8a21-37c37a100486%2F5f97b2ca-0939-4609-90de-ad19c1d7f64c%2F3b11ond_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QS 12-3 (Static) Indirect: Computing cash flows from operations LO P2
Bryant Company reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of
$3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the
indirect method.
Note: Amounts to be deducted should be indicated by a minus sign.
Cash Flows from Operating Activities (Indirect)
+
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$
0
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