newconnect mheducation.com/flow/connect.html Quiz Saved Exercis 12-3 Indirect: R
ID: 2566364 • Letter: N
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newconnect mheducation.com/flow/connect.html Quiz Saved Exercis 12-3 Indirect: Reporting and interpreting cash flows from operations LO P2 Arundei Company disclosed the following information for its recent calendar year Selected Year-End Balance Sheet Data 20,00 Other accrued liabilities decrease 16,000 ncome Statement Data $29,900 Accounts receivable decrease Purchased a machine for cash Salaries payable increase $105,800 Revenues Expenses 29,890 71,000 31,000 Depreciation expense 28, 80e ,600 $(33,400) Salaries expense Utilities expense 0157.03 Other expenses Net loss Book Required: using the indirect method (Any losses or amounts to be erences 1. Prepare the operating activities section of the statement of cash flows deducted should be indicated with a minus sign.) Cash flows from operating activitiesExplanation / Answer
Particulars
Amount
Net loss as per Income statement
($33,400.00)
Add: Depreciation Expense
$28,800.00
Cash flow before working capital changes
($4,600.00)
Add: Decrease in account receivables
$29,000.00
Add: Increase in Salaries Payable
$29,000.00
Less: Decrease in other Accrual Liabilities
($16,000.00)
Cash generated from Operating activities
$37,400.00
Particulars
Amount
Net loss as per Income statement
($33,400.00)
Add: Depreciation Expense
$28,800.00
Cash flow before working capital changes
($4,600.00)
Add: Decrease in account receivables
$29,000.00
Add: Increase in Salaries Payable
$29,000.00
Less: Decrease in other Accrual Liabilities
($16,000.00)
Cash generated from Operating activities
$37,400.00
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