Using the Indirect method, find the cash provided by operating activities for th

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Using the Indirect method, find the cash provided by operating activities for the year 573 Required: For each of the transactions in Brief Exercise 13-1, ?ndicate whether it would be classified as an operating investing, or financing activity (or would not be reported) on the statement of cash flows. BRIEF EXERCISE 13-3 Net Cash Provided by Operating Activities (Indirect Method) (Lo3) For the year ended December 31, 2002, Strident Company, an office equipment wholesaler, reported a net income of $84,000. Balances in the compan and end of the year were as follows: y's current asset and current liability accounts at the beginning December 31 2002 2001 Current assets: $60,000 Accounts receivable Inventory $250,000 $190,000 $437.000 $360,000 Current liabilities: $420,000 $8,000 $12,000 The Deferred Income Taxes Liability account on the balance sheet increased by $6,000 during the year, and depreciation charges were $50,000 during the year Required Using the indirect method, determine the cash provided by operating activities for the year BRIEF EXERCISE 13-4 (Appendix 13A) Net Cash Provided by Operating Activities (Direct

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Ans.

Strident Company

Statement of Cash Flow- Indirect Method

Net Income $84,000 Adjustment to convert Net income to a cash basis Deprication $50,000 Increase In Accounts Receivables -$60,000 Increase In Inventory -$77,000 Decrease In Prepaid Expenses $2,000 Increase In Accounts Payable $30,000 Decrease In Accrued Liabilities -$4,000 Increace In Income Taxes Payable $6,000 -$53,000

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