Use the indirect method to prepare the cash provided or used from operating acti

Question

   

   

    

Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.)

Cash flows from operating activities

Net income $30,000

Adjustments to reconcile net income to operating cash flow

Depreciation $37,600

Accounts receivable decrease 10,000

Inventory decrease 10,000

Prepaid expense increase ?

Accounts payable decrease ?

Wages payable increase   4,000

Income taxes payable decrease ?

0

?

Net cash provided by operating activities ?

A comparative balance sheet and income statement is shown for Cruz, Inc.

Explanation / Answer

Adjustments to reconcile net income to operating cash flow

Cash Flow from Operating activities SNO Particulars Amount(in $) A Net Income 30,000 B

Adjustments to reconcile net income to operating cash flow

Add:depreciation 37,600 C Changes in working Capital Add:Decrease in account receivable 10,000 Add:Decrease in Inventory 10,000 Less:Increase in Prepaid expenses(5,400-4,200) (1,200) Less:Decrease in accounts payable(15000-21000) (6,000) Add:Increase in wages payable 4,000 Less:decrease in income tax payable(1400-2600) (1200) Net Cash provided by operating activities 83,200

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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