The Dickinson Company reported net income of $155,000 for the current year. Depr
ID: 2381170 • Letter: T
Question
The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 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
$20,000
$15,000
Accounts receivable
19,000
32,000
Inventories
50,000
65,000
Accounts payable
12,000
18,000
Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.
End of Year
Beginning of Year
Cash
$20,000
$15,000
Accounts receivable
19,000
32,000
Inventories
50,000
65,000
Accounts payable
12,000
18,000
The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:Explanation / Answer
particulars
Amount
Net income
155000
Add:-depreciation on buildings & equipment
65000
Adjustment for working capital changes
Add:decrease in accounts recievable
13000
Add: decrease in invenyories
15000
Less: decrease in accounts payable
(6000)
Cash generated from operating activities
242000
particulars
Amount
Net income
155000
Add:-depreciation on buildings & equipment
65000
Adjustment for working capital changes
Add:decrease in accounts recievable
13000
Add: decrease in invenyories
15000
Less: decrease in accounts payable
(6000)
Cash generated from operating activities
242000
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