Accounts receivable from sales transactions were $45,878 at the beginning of the

Question

Accounts receivable from sales transactions were $45,878 at the beginning of the year and $60,085 at the end of the year. Net income reported on the income statement for the year was $139,728. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

Select the correct answer.

$14,207

$125,521

$139,728

$153,935

A building with a book value of $46,317 is sold for $54,277 cash Using the indirect method, choose how this transaction should be shown on the statement of cash flows.

Select the correct answer.

an increase of $46,317 from investing activities and an addition to net income of $7,960

an increase of $54,277 from investing activities

an increase of $46,317 from investing activities

an increase of $54,277 from investing activities and a deduction from net income of $7,960

Explanation / Answer

answer to first part Net income $139,728 Adjustment for - Increase in Accounts receivable ($60,085 - $45,878 = $14207 ) cash flows from operating activities $139,728 - $14207 = $125,521 Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is $125,521. now please rate my answer

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