Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was

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Cash Flows From Used For Operating Activities The Net Income Reported On The Income Statement For The Current Year Was 1 (34.21 KiB) Viewed 9 times

Cash Flows From Used For Operating Activities The Net Income Reported On The Income Statement For The Current Year Was 2 (36.56 KiB) Viewed 9 times

Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $290,000. Depreciation recorded on equipment and a building amounted to $150,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable End of Year $117,600 132,500 291,900 5,600 143,400 11,300 Beginning of Year $135,000 141,100 274,300 7,100 172,400 6,300 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Net income V Adjustments to reconcile net income to net cash flows from (used for) operating activities: 290,000 ✓ Sha U
Cash flows from (used for) operating activities: Net income ✓ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation ✓ Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Increase in accounts receivable Depreciation Increase in salaries payable Net cash flows from operating activities Feedback -X -X Feedback 290,000 150,500 8,600 ✓ 1,500 X 5,000 X 2,900 X 1,760 X Check My Work a. Calculate the increases and decreases in the current asset/liability accounts over the period. What and these changes have on cash? b. If The direct method had been used, would the net cash flows from operating activities have been the same? 409,000 iha U