Cash Flows from Indirect Method statement for the current year was $130,700. Dep

Question

Cash Flows from Indirect Method statement for the current year was $130,700. Depreciation recorded on store equipment for the year amounted to $21,600. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year 51,630 37,020 50,550 5,680 48,380 26,430 Beginning of Year Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable a. Prepare the Cash Flows from O payments, decreases in cash, or any negative adjustments. $47,500 35,100 53,440 4,510 44,940 29,360 Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash Previous Next Oreck My Woark 2 more Check My Woark uses remaning

Explanation / Answer

Cash flow from operating activities Net income 130700 Adjustments to reconcile the net income Depreciation expense 21600 Changes in current asset and liabilities Increase in accounts receivable -1920 decrease in Inventory 2890 Increase in prepaid expense -1170 Increase in accounts payable 3440 Decrease in wages payable -2930 21910 Cash flow from operating activities 152610

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