The current sections of Payne Company balance sheets at December 31, 2013 and 20
ID: 2381788 • Letter: T
Question
The current sections of Payne Company balance sheets at December 31, 2013 and 2014, are presented here.
Payne's net income for 2014 was $203,000. Depreciation expense was $25,000.
2014 2013
Current assets
Cash $115,000 $99,000
Accounts receivable 105,000 89,000
Inventory 154,000 172,000
Prepaid expense 27,000 21,000
Total current assets $401,000 $381,000
Current liabilities
Accrued expenses payable $ 15,000 $ 5,000
Accounts payable 85,000 93,000
Total current liabilities $100,000 $ 98,000
Instructions
Prepare the net cash provided by operating activities section only for the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.
Please provide full details Gracias....
The current sections of Payne Company balance sheets at December 31, 2013 and 2014, are presented here. Payne's net income for 2014 was $203,000. Depreciation expense was $25,000 Instructions Prepare the net cash provided by operating activities section only for the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.Explanation / Answer
NET INCOME = 203000
ADD:-DEPRECIATION EXPENSE = 25000
LESS:NET INCREASE IN TOTAL CURRENT ASSETS OTHER THAN CASH = (4000)
[(401000-115000) - (381000-99000)]
ADD:-NET INCREASE IN TOTAL CURRENT LIABILITIES = 2000
[100000-98000]
NET CASH INFLOW FROM OPERATING ACTIVITIES = 226000
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