12. (3 points) For the following amounts, compu te cash flows from operations us
ID: 2571512 • Letter: 1
Question
12. (3 points) For the following amounts, compu te cash flows from operations using the indirect method. Net income Depreciation expense Accounts receivable increase (decrease) Prepaid expenses increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) $15,000 37,500 20,000 (12,750) 50,000 16,000 (32,800) Cash Flows from Operating Activities (Indirect) Net Income Adjustments to reconcile net income to net cash provided by operations Net cash provided by (used in) operating activities:Explanation / Answer
Cash flows from Operating activities (Indirect)
Net Income 15,000 Adjustments to reconcile net income to net cash provided by operatinons : ADD : Depreciation expense 37,500 LESS : Increase in Accounts Receivable (20,000) ADD : Decrease in Prepaid expenses 12,750 LESS : Increase in Inventory (50,000) ADD : Increase in Accounts Payable 16,000 LESS : Decrease in Accrued Liabilities (32,800) Net cash used in Operating activities (21,550)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.