Changes in various accounts and gains and losses on the sale of assets during th

Question

Changes in various accounts and gains and losses on the sale of assets during the year for Weston Company are given below:

For each item, indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year.

  Item Amount                       Accounts receivable $ 73,000   increase   Inventory $ 119,000   increase   Prepaid expenses $ 3,300   decrease   Accounts payable $ 46,000   decrease   Accrued liabilities $ 9,500   decrease   Income taxes payable $ 15,500   increase   Sale of equipment $ 8,500   gain   Sale of long-term investments $ 12,200   gain

Explanation / Answer

Item Amount Effect Accounts receivable $ 73000 Deduct Inventory $ 119000 Deduct Prepaid expenses $ 3300 Add Accounts payable $ 46000 Add Accrued liabilities $ 9500 Add Income taxes payable $ 15500 Deduct Sale of equipment $ 8500 Deduct Sale of long-term investments $ 12200 Deduct

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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