The income statement disclosed the following items for the year: Depreciation expense $37,100 Gain on disposal of equipment 21,650 Net income 287,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,780 Inventory (3,290) Prepaid insurance (1,230) Accounts payable (3,920) Income taxes payable 1,230 Dividends payable 870 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The income statement disclosed the following items for the year: Depreciation expense $37,100 Gain on disposal of equipment 21,650 Net income 287,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,780 Inventory (3,290) Prepaid insurance (1,230) Accounts payable (3,920) Income taxes payable 1,230 Dividends payable 870 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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 5E: Cash flows from operating activitiesindirect method The net income reported on the income statement...
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