The net income reported on the income statement for the current year was $262,454. Depreciation recorded on fixed assets and amortization of patents for the year were $44,908 and $11,220, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: EndBeginningCash$40,154$64,701Accounts Receivable125,905107,000Inventories105,09293,416Prepaid Expenses3,0457,177Accounts Payable (merchandise creditors)53,06766,334What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Answered: The net income reported on the income…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

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The net income reported on the income statement for the current year was $262,454. Depreciation recorded on fixed assets and amortization of patents for the year were $44,908 and $11,220, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$40,154	$64,701
Accounts Receivable	125,905	107,000
Inventories	105,092	93,416
Prepaid Expenses	3,045	7,177
Accounts Payable (merchandise creditors)	53,067	66,334

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

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