Cash Flows from Operating Activities—Indirect MethodStaley Inc. reported the following data:Net income$461,400Depreciation expense55,200Loss on disposal of equipment40,000Increase in accounts receivable21,800Increase in accounts payable10,500Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Staley Inc.Statement of Cash Flows (partial)Cash flows from operating activities: Net income $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation fill in the blank 4 Loss on disposal of equipment fill in the blank 6 Changes in current operating assets and liabilities: Increase in accounts receivable fill in the blank 8 Increase in accounts payable fill in the blank 10 Net cash flow from operating activities $fill in the blank 11

Cash flow statement provides information about the cash inflows and cash outflows of the company.…

Answered: Cash Flows from Operating…

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 6E

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Cash Flows from Operating Activities—Indirect Method

Staley Inc. reported the following data:

Net income	$461,400
Depreciation expense	55,200
Loss on disposal of equipment	40,000
Increase in accounts receivable	21,800
Increase in accounts payable	10,500

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.


Staley Inc.
Statement of Cash Flows (partial)
Cash flows from operating activities:
Net income	$fill in the blank 2
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	fill in the blank 4
Loss on disposal of equipment	fill in the blank 6
Changes in current operating assets and liabilities:
Increase in accounts receivable	fill in the blank 8
Increase in accounts payable	fill in the blank 10
Net cash flow from operating activities		$fill in the blank 11

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