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12-5 from ting Activitles (Indirect Method) [LO 12-2] 1 Year 2 $ 11,100 $ 9,500

ID: 2585779 • Letter: 1

Question

12-5 from ting Activitles (Indirect Method) [LO 12-2] 1 Year 2 $ 11,100 $ 9,500 $21,100 $18,500 6,090 5,900 12,090 11,390 5,010 3,600 9,010 7,110 1,100 1,100 1,550 1,550 Salaries and Wages Expense 2,400 1,900 5,100 5,100 1,510 600 2,360 460 760 605 755 510 735 810 865 and Wages Payable 1,005 1,210 205 260 305 410 810 705 810 Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Provided

Explanation / Answer

Case A Increase/ Case B Increase/ Year 2 Year 1 (Decrease) Year 2 Year 1 (Decrease) Sales Revenue $ 11,100 $    9,500 $ 21,100 $ 18,500 Cost of Goods Sold         6,090         5,900      12,090      11,390 Gross Profit         5,010         3,600         9,010         7,110 Depreciation Expense         1,100         1,100         1,550         1,550 Salaries and Wages Expense         2,400         1,900         5,100         5,100 Net Income         1,510            600         2,360            460 Accounts Receivable            305            410 $         (105)            760            605 $           155 Inventory            755            510 $           245            735            810 $           (75) Accounts Payable            810            705 $           105            810            865 $           (55) salaries and Wages Payable         1,005         1,210 $         (205)            205            260 $           (55) Case A Case B Net Income 1510 2360 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense 1100 1550 2610 3910 Changes in Assets and Liabilities Add/Less:Decrease/Increase in Accounts Receivable 105 -155 Less/Add : Increase/Decrease in Inventory -245 75 Add/Less : Increase/Decrease in Accounts Payable 105 -55 Less: Decrease in accrued expenses -205 -55 -240 -190 Cash flow from operations 2370 3720