Computing operating activities cash flow----indirect method The records of McKni
ID: 2467425 • Letter: C
Question
Computing operating activities cash flow----indirect method
The records of McKnight Color Engraving reveal the following:
Net income $38,000
Depreciation expense $4,000
Sales revenue 51,000
Decrease in current liabilities 28,000
Loss on sale of land 5,000
Increase in current assets other than cash 14,000
Acquisition of land 39,000
Compute the flows from operating activities by the indirect method for year ended December 31, 2014.
Net income $38,000
Depreciation expense $4,000
Sales revenue 51,000
Decrease in current liabilities 28,000
Loss on sale of land 5,000
Increase in current assets other than cash 14,000
Acquisition of land 39,000
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Net Income 38,000.00 Loss on sale of land 5,000.00 Depreciation Expense 4,000.00 Increase in Current Assets (14,000.00) Decrease in Current Liabilities (28,000.00) Cash flow from operating activities 5,000.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.