Perkins Co.\'s current asset and liability balances for the past two years are a

Question

Perkins Co.'s current asset and liability balances for the past two years are as follows. Net income for 2016 was $1,252,000, and depreciation expense was $60,000 Accounts Receivable Inventories Accounts Payable Accrued Liabilities December 31, 2016 $480,000 670,000 387,000 90,000 December 31, 2015 $380,000 760,000 326,000 110,000 Using the indirect method, prepare the cash flows provided by operating activities section of the statement of cash flows for 2016. (Show amounts that decrease ca e.g.-15,000 or in parentheses, e.g.(15,000)) Cash flows from operating activities Net cash by operating activities

Explanation / Answer

cash Flow From Operating Activities Net Income 1,252,000 Adjustment to reconcile net income to net cash provided by operating activities Depreciation Expenses 60,000 Increase in Accounts Receivable -100,000 Decrease in Inventory 90,000 Increase in Accounts Payables 61,000 Decrease in Accrued Liabilities -20,000 91,000 Net cash Provided by Operating Activities 1,161,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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