1. The net income reported on the income statement for the current year was $132
ID: 2357461 • Letter: 1
Question
1. The net income reported on the income statement for the current year was $132,000. Depreciation recorded on store equipment for the year amounted to $21,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:end of year begaining of year
cash 52300 48200
accounting receivable net 37500 35600
merchanidise invorery 51200 54220
prepaid expenss 6000 4600
account payable 49000 45600
wages payble 26800 29800
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. If needed, use the minus sign to indicate cash outflows.
Net income 132000
Adjustments to reconcile net income to net cash
flow from operating activities: 21800
changes in current opretaing assets to libelities
increses in account receivable __________ ?
decreses in merchindise invotory is : 3020
increses in prepaid expenses: ___________ ?
increses in account payable : ____________?
decreses in wages patble : _____?
Net cash flow from operating activities _____________ ?
Explanation / Answer
Net income 132000 Adjustments to reconcile net income to net cash flow from operating activities: 21800 changes in current opretaing assets to libelities increses in account receivable 1900 decreses in merchindise invotory is : 3020 increses in prepaid expenses: 1400 increses in account payable : 3400 decreses in wages patble : -3000 Net cash flow from operating activities 160,520
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