Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 6E
Cash flows from operating activities—indirect method
The net income reported on the income statement for the current year was $185,000. Depreciation recorded on equipment and a building amounted to $96,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
| End of Year | Beginning of Year |
|
| Cash | $ 75,900 | $ 86,150 |
| Accounts receivable (net) | 84,550 | 90,000 |
| Inventories | 186,200 | 175,000 |
| Prepaid expenses | 3,600 | 4,500 |
| Accounts payable (merchandise creditors) | 91,500 | 110,000 |
| Salaries payable | 7,200 | 4,000 |
- A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.
- B. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain.
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Chapter 13 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 1BECh. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Prob. 4BECh. 13 - Prob. 5BECh. 13 - Prob. 6BECh. 13 - Prob. 7BECh. 13 - Prob. 8BECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Prob. 18ECh. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Prob. 2PBCh. 13 - Prob. 3PBCh. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1ADMCh. 13 - Prob. 2ADMCh. 13 - Prob. 3ADMCh. 13 - Prob. 4ADMCh. 13 - Prob. 1TIFCh. 13 - Financial condition Tidewater Inc., a retailer,...
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