The net income reported on the income statement for the current year was $349,20

Question

The net income reported on the income statement for the current year was $349,200. Depreciation recorded on the equipment and a building amounted to $91,000 for the year . Balance of the current assets and current liability accounts at the beginning and end of the year as follows Ending. Beginning Cash. $89,080. $96,500 Accounts receivable. $112,710. $201,090 Paid expenses. $13,050. $15,180 Accounts payable. $96,790. $103,700 Salaries payable. $15,270. $14,200
A. Prepare the cash flows for operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decrease in cash and for any adjustments, if required. B. If the direct method had been used, would he net cash flow from operating activities have been the same? The net income reported on the income statement for the current year was $349,200. Depreciation recorded on the equipment and a building amounted to $91,000 for the year . Balance of the current assets and current liability accounts at the beginning and end of the year as follows Ending. Beginning Cash. $89,080. $96,500 Accounts receivable. $112,710. $201,090 Paid expenses. $13,050. $15,180 Accounts payable. $96,790. $103,700 Salaries payable. $15,270. $14,200
A. Prepare the cash flows for operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decrease in cash and for any adjustments, if required. B. If the direct method had been used, would he net cash flow from operating activities have been the same? Ending. Beginning Cash. $89,080. $96,500 Accounts receivable. $112,710. $201,090 Paid expenses. $13,050. $15,180 Accounts payable. $96,790. $103,700 Salaries payable. $15,270. $14,200
A. Prepare the cash flows for operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decrease in cash and for any adjustments, if required. B. If the direct method had been used, would he net cash flow from operating activities have been the same?

Explanation / Answer

Cash flow from operating activities :

b) If the direct method had been used net cash flow from operating activities have been same.

Net income 349200 Adjustment to reconcile net income Depreciation expense 91000 Decrease account receivable 88380 Decrease paid expense 2130 Increase salary payable 1070 Decrease account payable -6910 Net cash flow from operating activities 524870

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