Exercise 13-5 Your answer is partially correct. Try again Mallory Michaels, seni

Question

Exercise 13-5 Your answer is partially correct. Try again Mallory Michaels, senior accountant for Trendy Fashions, has gathered the following balances from the company's general ledger: December 31, 2014 December 31, 2013 Accounts Receivable Inventories Prepaid Expenses Accounts Payable Accrued Liabilities Income Taxes Payable Net Income Depreciation Expense Loss on the sale of land $51,887 145,130 4,500 39,478 15,590 1,420 710,421 83,998 14,940 $63,531 119,906 3,960 52,098 11,825 12,165 Using the indirect method, prepare the cash flows provided by operating activities section of the statement of cash flows for 2014. (If amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).) Cash flows from operating activities Net income/ (loss) 710421 Adjustments to net income Depreciation 83998 Loss on sale of land Decrease in accounts payable Decrease in accounts receivable Increase in inventories Increase in prepaid expenses Increase in accrued liabilities Decrease in income tax payable 14940 Net cash provided - by operating activities

Explanation / Answer

Cash flow from operating activities :

Net income 710421 Adjustment to reconcile net income Depreciation expense 83998 Loss on sale of land 14940 Decrease account payable -12620 Decrease account receivable 11644 Increase inventories -25224 Increase in prepaid expense -540 Increase accured liabilities 3765 Decrease in income tax payable -10745 65218 Net cash provided by operating activities 775639

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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