Cash Flows from Operating Activities—Indirect Method The income statement disclo

Question

Cash Flows from Operating Activities—Indirect Method

The income statement disclosed the following items for 2014:

Balances of the current assets and current liability accounts changed between December 31, 2013, and December 31, 2014, as follows:

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

Explanation / Answer

Cash Flows from Operating Activities: Net Income 393,500 Depreciation Expense 58,900 Gain on Sale of Equipment -34,370 Increase in Accounts Receivable -9,180 Decrease in Inventory 5,220 Decrease in Prepaid Insurance 1,960 Decrease in Accounts Payable -6,220 Increase in Dividend Payable 1,370 Increase in Income Tax Payable 1,960 Net Cash Flow from Operating Activities 413,140

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

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