Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781119034681
Author: Weygandt
Publisher: WILEY
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Chapter 13, Problem 13.4BE
To determine
Cash flows from operating activities:
These refer to the cash received or cash paid in day-to-day operating activities of a company.
Indirect method:
Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.
- Deduct increase in current assets.
- Deduct decrease in current liabilities.
- Add decrease in current assets.
- Add the increase in current liability.
- Add
depreciation expense and amortization expense. - Add loss on sale of plant assets.
- Less gain on sale of plant assets.
To determine: The amount of net cash provided by the operating activities using the indirect method.
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Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
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