
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The two independent cases are listed below
Case A
Case B
Year 2 Year 1 Year 2 Year 1
Sales Revenue
Cost of Goods Sold
Gross Profit
Depreciation Expense
Salaries and Wages Expense
Net Income
Accounts Receivable
Inventory
Accounts Payable
Salaries and Wages Payable
$11,200 $10,000 $21,200 $19,000
6,180 6,300 12,180 11,680
5,020 3,700 9,020 7,320
1,200 1,200 1,600 1,600
2,300 1,800 5,200 5,200
520
610
820
880
270
1,520
310
760
820
1,010
420
520
710
1,220
700 2,220
770
740
820
210
Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted
should be indicated with a minus sign.)
Case A
Case B
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities
Changes in Assets and Liabilities
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