Question Partial balance sheets and additional information are listed below for Sowell Company. Sowell Company Partial Balance Sheets as of December 31 Assets 2016 2015 Cash $ 38,000 $ 18,200 Accounts receivable 68,200 83,000 Inventory 38,000 33,200 Liabilities Accounts payable $ 52,200 $ 60,000 Additional information for 2016: Net income was $86,000. Depreciation expense was $25,000. Required: Prepare the operating activities section of the statement of cash flows for 2016 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.18E
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Partial balance sheets and additional information are listed below for Sowell Company. Sowell Company Partial Balance Sheets as of December 31 Assets 2016 2015 Cash $ 38,000 $ 18,200 Accounts receivable 68,200 83,000 Inventory 38,000 33,200 Liabilities Accounts payable $ 52,200 $ 60,000 Additional information for 2016: Net income was $86,000. Depreciation expense was $25,000. Required: Prepare the operating activities section of the statement of cash flows for 2016 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

 

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