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The list includes all balance sheet accounts related to cash from operating acti

ID: 2410081 • Letter: T

Question

The list includes all balance sheet accounts related to cash from operating activities Case X Case Y Case Z $ 7,200 $180,000 $129,6ee Net income Depreciation expense Accounts receivable increase (decrease) 72,80 36,e00 Inventory increase (decrease) Accounts payable increase (decrease Accrued liabilities increase (decrease) (79,200) 21,688 (14,400) 54,000 14,4 43,200 ,80e (7,200) (36,008) (18,000) 18,800 43,20 (39,680) 25,200 e above separate cases x. Y, and Z, compute cash flows from operations using the indirect method (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Case Z 129,600 Case Case Y Net Income $ 7200S 180,000 Adjustments to reconcile net income to net cash provided by operations

Explanation / Answer

Cash Flow from Operating Activities

Case X

Case Y

Case Z

Net Income

7200

180000

129600

Adjustments:

Depreciation Expense

54000

14400

43200

(Increase)/Decrease in Accounts Receivable

(72000)

(36000)

7200

(Increase)/Decrease in Inventory

36000

18000

(18000)

Increase/(Decrease) in Accounts Payable

43200

(39600)

25200

Increase/(Decrease) in Accrued Liabilities

(79200)

21600

(14400)

Cash generated from Operating Activities

(10800)

158400

172800

Cash Flow from Operating Activities

Case X

Case Y

Case Z

Net Income

7200

180000

129600

Adjustments:

Depreciation Expense

54000

14400

43200

(Increase)/Decrease in Accounts Receivable

(72000)

(36000)

7200

(Increase)/Decrease in Inventory

36000

18000

(18000)

Increase/(Decrease) in Accounts Payable

43200

(39600)

25200

Increase/(Decrease) in Accrued Liabilities

(79200)

21600

(14400)

Cash generated from Operating Activities

(10800)

158400

172800

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