Suppose your company reports $225 of net income and S53 of cash dividends paid,

ID: 2560924 • Letter: S

Question

Suppose your company reports $225 of net income and S53 of cash dividends paid, and its comparative balance sheet indicates the following Cash Accounts Receivable Inventory Beginning Ending 5 48 5 268 140 238 310 18 5 498 S 704 Total Salaries and Wages Payable Common Stock Retained Earnings 5 23 S 115 165 107 310 482 5 498 S 704 Total 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.) Net Income Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable Dividends paid Net Cash Flow from Operating Activities

Explanation / Answer

Net Income $225

Add: Decreae in Inventory($165-$107)= $58

Increase in Salaries and Wages payable ($115-$23)= $92

_______

$150 $150

____________

$375

Less:Increase in Acounts Receivable($238-$140)= $78

Dividend Paid $53

______

$131 $131

__________

Net Cash Flow from operating activities $244

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

Suppose your company reports $250 of net income and $58 of cash dividends paid,

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Suppose your company reports $225 of net income and S53 of cash dividends paid,

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