The Potter Company reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $74,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as followws: Account Beginning of Year End of Year Cash $15,000 $20,000 Accounts Receivable 32,000 19,000 Inventories 65,000 50,000 Prepaid Expenses Accounts Payable Income Taxes Payable 5,000 7,500 18,000 12,000 1,200 1,600 Instructions Prepare the cash flows from operating activities section of the statement of cash flows using the INDIRECT method. Please show your work either in the answer space provided OR upload a file.
The Potter Company reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $74,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as followws: Account Beginning of Year End of Year Cash $15,000 $20,000 Accounts Receivable 32,000 19,000 Inventories 65,000 50,000 Prepaid Expenses Accounts Payable Income Taxes Payable 5,000 7,500 18,000 12,000 1,200 1,600 Instructions Prepare the cash flows from operating activities section of the statement of cash flows using the INDIRECT method. Please show your work either in the answer space provided OR upload a file.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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