Exercise 12-4 Cosi Company reported net income of $210,480 for 2014. Cosi also r

Question

Exercise 12-4 Cosi Company reported net income of $210,480 for 2014. Cosi also reported depreciation expense of $39,060 and a loss of $5,990 on the disposal of plant assets. The comparative balance sheet shows an increase in accounts receivable of $14,660 for the year, a $18,690 increase in accounts payable, and a $4,180 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. 5,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

COSI COMPANY Cash Flow Statement For year ended 31 December 2014 Cash flows from operating activities Net Income $ 210,480 Adjustment to reconcile net income to: Depreciation expense $   39,060 Loss on disposal of assets $      5,990 Increase in accounts receivable $ (14,660) Increase in prepaid expenses $   (4,180) Increase in accounts payable $   18,690 $    44,900 Net cash provided by operating activities $ 255,380

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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