The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016. During the year 2016, the working capital accounts were changed as follows: Increase in accounts receivable: $22,000 Increase in accounts payable: $18,600 Increase in inventory: $14,800 Decrease in non-trade notes payable: $30,000 Increase in available for sale securities: $32,000 The depreciation expense was $34,000 for the year 2016. Required: Compute net cash provided (used) by operating activities using the indirect method.
The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016. During the year 2016, the working capital accounts were changed as follows: Increase in accounts receivable: $22,000 Increase in accounts payable: $18,600 Increase in inventory: $14,800 Decrease in non-trade notes payable: $30,000 Increase in available for sale securities: $32,000 The depreciation expense was $34,000 for the year 2016. Required: Compute net cash provided (used) by operating activities using the indirect method.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 37P
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Question
The Garfield Ltd company uses the indirect method for preparing its statement of
flows.
During the year 2016, the
Increase in
Increase in accounts payable: $18,600
Increase in inventory: $14,800
Decrease in non-trade notes payable: $30,000
Increase in available for sale securities: $32,000
The
Required:
Compute net cash provided (used) by operating activities using the indirect method.
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