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The following accounts and corresponding balances were drawn from Walton Company's Year 2 and Year 1 year-end balance sheets. Account Title Unearned revenue Prepaid rent Year 2 $ 7,500 Year 1 $ 3,800 1,510 2,510 During the year, $85,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $19,000. Required Prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Cash outflows should be indicated with minus sign. Cash flow from operating activities: Net cash flow from operating activities

The following accounts and corresponding balances were drawn from Walton Company's Year 2 and Year 1 year-end balance sheets. Account Title Unearned revenue Prepaid rent Year 2 $ 7,500 Year 1 $ 3,800 1,510 2,510 During the year, $85,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $19,000. Required Prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Cash outflows should be indicated with minus sign. Cash flow from operating activities: Net cash flow from operating activities

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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The following accounts and corresponding balances were drawn from Walton Company's Year 2 and Year 1 year-end balance sheets. Account Title Unearned revenue Prepaid rent Year 2 $ 7,500 Year 1 $ 3,800 1,510 2,510 During the year, $85,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $19,000. Required Prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Cash outflows should be indicated with minus sign. Cash flow from operating activities: Net cash flow from operating activities
Transcribed Image Text:The following accounts and corresponding balances were drawn from Walton Company's Year 2 and Year 1 year-end balance sheets. Account Title Unearned revenue Prepaid rent Year 2 $ 7,500 Year 1 $ 3,800 1,510 2,510 During the year, $85,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $19,000. Required Prepare the operating activities section of the statement of cash flows assuming the direct approach is used. Note: Cash outflows should be indicated with minus sign. Cash flow from operating activities: Net cash flow from operating activities
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