Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the fo

ID: 2437402 • Letter: C

Question

Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable $385,500 69,200 25,700 28,400 12,400 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indireat method. Use the minus sign to indicate cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Changes in current operating assets and liabilities:

Explanation / Answer

Answer:

Staley Inc.

Statement of Cash Flows (partial)

Amount $

Cash flows from operating activities:

385500

Net income

Adjustments to reconcile net income to net cash flow from operating activities:

Depreciation expense

69,200

Loss on disposal of equipment

25,700

Increase in accounts receivable

($28,400)

Increase in accounts payable

12400

Total

78,900

Cash flows from operating activities:

464,400

Net Cash flows from operating activities: $464,400