emplex .orporauon prepares ius statement o casn llows using une inairec metroa 1

Question

emplex .orporauon prepares ius statement o casn llows using une inairec metroa 10 report operating acuVlues. Net income or 2018 fiscal year was $624,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: exens ofu o The folowing informa Decrease in accounts receivable Increase in inventories Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable s 22,000 9,200 8,500 10,000 14,000 Required Prepare the operating activities section of the 2018 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and liabilities: Net cash flows from operating activities

Explanation / Answer

Cash flows from operating activities: Net Income 624000 Adjustments for noncash effects: Depreciation and amortization expense 87000 Changes in operating assets and liabilities Decrease in accounts receivable 22000 Increase in inventory -9200 Increase in prepaid expenses -8500 Increase in salaries payable 10000 Decrease in income taxes payable -14000 Net cash flows from operating activities 711300

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