Suppose your company reports $220 of net income and $52 of cash dividends paid,

Question

Suppose your company reports $220 of net income and $52 of cash dividends paid, and its comparative balance sheet indicates the following. Beginning Ending Cash $ 47 $ 267 Accounts Receivable 135 237 Inventory 305 197 Total $ 487 $ 701 Salaries and Wages Payable $ 22 $ 110 Common Stock 160 118 Retained Earnings 305 473 Total $ 487 $ 701 Required: 1. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Income                 220.00 Increase in AR              (102.00) Decrease in inventory                 108.00 Increase in Salaries and wages payable                   88.00 Cash flow from operating activities                 314.00 Note - Dividend and common stock are financing activities

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.