Cash Flows from Operating Activities-Indirect Method The net income reported on

Question

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $203,400. Depreciation recorded on equipment and a building amounted to $60,800 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year $53,490 67,830 133,730 7,440 59,750 8,610 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable $56,160 69,300 119,400 7,920 62,670 7,810 Edit Save a copy Update original Undo

Explanation / Answer

Cash flows from operating activities Net income 203400 Adjustments to recocile net income Depreciation 60800 Changes in current assets and current liabilities: Decrease in Accounts receivable 1470 Increase in inventories -14330 Decrease in prepaid expenses 480 Decrease in Accounts payable -2920 Increase in salaries payable 800 Net Cash flows from operating activities 249700

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