A corporation is preparing a statement of cash flow. Complete the following part

ID: 2444990 • Letter: A

Question

A corporation is preparing a statement of cash flow. Complete the following part of it in the spaces provided (be sure to indicate + or -):

Operating Activities: Amount

Net income (accrual), $45,000 $__________

Adjustments to convert net income to cash from

Operating activities:

Depreciation expense, $6,000 $__________

Decrease in accounts receivable balance, $2,000 $__________

Decrease in accrued wages payable, $1,000 $__________

Amortization of patent, $500 $__________

Increase in inventory balance, $4,000 $__________

Decrease in accounts payable balance, $1,500 $__________

Net cash inflow (outflow) from operations $__________

Computation of Net cash flow from operating activities

Particulars Amount

Net income 45000

Adjustments :

depreciation expense 6000

decrease in accounts receivable 2000

decrease in wages payable (1000)

Amortisation of patent 500

increase in Current assets (4000)

decrase in accounts payable (1500)

Net cash inflow from operations 47000.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.