The operating expenses and taxes (including $ 80,000 of depreciation) of a company for a given year were $ 600,000. Net income was $ 350,000. Prepaid insurance decreased from $ 18,000 to $ 14,000 during the year, while wages payable increased from $ 22,000 to $ 36,000 during the year. Compute the cash flows from operating activities under the indirect method.
The operating expenses and taxes (including $ 80,000 of depreciation) of a company for a given year were $ 600,000. Net income was $ 350,000. Prepaid insurance decreased from $ 18,000 to $ 14,000 during the year, while wages payable increased from $ 22,000 to $ 36,000 during the year. Compute the cash flows from operating activities under the indirect method.
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 5DQ
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