M12-4 Computing Cash Flows from Operating Activities (Indirect Method) [LO 12-2]
ID: 2581806 • Letter: M
Question
M12-4 Computing Cash Flows from Operating Activities (Indirect Method) [LO 12-2] The independent cases are listed below includes all balance sheet accounts related to operating activities Case Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) A Case B Case C $ 317,000 $ 18,500 $427,000 87,000 (27,000) 57,000 (57,000) 127,000 77,000 67,000 227,000) (47,000) 47,000 57,000 114,000 (57 (207,000) 000 42,000 Show the operating activities section of cash flows for each of the given cases. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable Accrued Liabilities Net Cash Provided by Operating ActivitiesExplanation / Answer
Computation of operating profit indirect method:
case B
Add: depreciation non cash item
Particulars case Acase B
Case C Net income $ 317000 $. 18500 $ 427000Add: depreciation non cash item
47000 157000 87000 Change in assets and liabilities accounts receivable increase in assets. Use of cash (114000) - - Decrease in account receivable source of cash - 207000 27000 Inventory 57000 (42000) (57000) Accounts payable (57000) 127000 77000 Accured liabilities 67000 (227000) (47000) Net cash provided by operating activities 317000 240500 514000Related Questions
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