- Chew Corporation Prepares Its Statement Of Cash Flows Using The Indirect Method Of Reporting Operating Activities Net I 1 (32.12 KiB) Viewed 12 times
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,252,000. Depreciation expense of $142,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Increase in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease in salaries payable Increase in income taxes payable Cash flows from operating activities: Required: Prepare the cash flows from operating activities for 2018. (Amounts to be deducted should be indicated with a minus sign.) Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 154,000 110,000 64,000 $ 32,000 46,000 0