1. Business
  2. Accounting
  3. the income statement disclosed the following items for the year...

Question: the income statement disclosed the following items for the year...

Question details

The income statement disclosed the following items for the year Depreciation expense Gain on dispasal of equipment27,500 Net income $ 65,000 or the exact wording of the ans 620,000 The changes in the current asset and iabaity accounts for the year are as follows: Increase (Decrease) Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable $11 200 (6,350) (1200) (4 200) 1,650 2,500 Required A Prepare the Cash Flows from Operating Activities section of the stetement of cash fows Using the indirect method Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries Use me minus sign to indicate cash outflows cash payments, decreases in cash and for any ajustments, if required B Briefy explain why net cash flows from operating activites is different from net income

A Prepare the Cash Flows from Operating Achvities section f thestaterment of cash flows, using the indrect method Refer to the Amourt Descriptions list provided or the exact word cash payments, decreases in cash and for any adjustments,if required Score: 69/87 Statement of Cash Flows (partial) Cash flowsfram operating activities: 2 Net income | 3: $620,000.00 Adjustments to reconcile net incometonet ashfowfrom operating activities: 4Depreciation expense 5 Gain on disposal of equipment sChanges in current operating assets and liabilities: 7Increase in accounts receivable 65,000.00 27,50000 11.200.00 6.350.00 1.200.00 420000 1.65000 Decrease in inventory 9Decrease in prepaid insurance Decrease in accounts payable l Increase in income taxes payable : Cash flows from operating activities 651.30000

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution