P12-5A Rewe Company\'s income statement contained the condensed information belo

Question

P12-5A Rewe Company's income statement contained the condensed information below. REWE COMPANY Income Statement For the Year Ended December 31, 2017 Prepare the operating activities section-indirect method. (LO 2), AP XLS Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $970,000 $614,000 55,000 16,000 685,000 285,000 56,000 $229,000 Rewe's balance sheets contained the following comparative data at December 31. Accounts receivable Accounts payable Income taxes payable Accounts payable pertain to operating expenses 2017 $70,000 41,000 13,000 2016 $60,000 32,000 7,000 Instructions Prepare the operating activities section of the statement of cash flows using the indirect method. Net cash provided $305,000

Explanation / Answer

REWE COMPANY Cash Flow Statement   For year ended 31 December 2017 Cash flows from operating activities Net Income $ 229,000 Adjustment to reconcile net income to: Depreciation expense $   55,000 Loss on disposal of plant assets $   16,000 Increase in accounts receivable $ (10,000) Increase in accounts payable $      9,000 Increase in income tax payable $      6,000 $    76,000 Net cash provided by operating activities $ 305,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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