23. The net income reported on the income statement for the current year was $31

Question

23. The net income reported on the income statement for the current year was $310,439. Depreciation recorded on fixed assets and amortization of patents for the year were $34,185 and $9,668, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

End Beginning Cash $47,094 $53,614 Accounts receivable 127,153 102,267 Inventories 110,022 93,405 Prepaid expenses 3,466 6,644 Accounts payable (merchandise creditors) 45,305 79,232

Explanation / Answer

cash flows from operating activities:

Net income 310439 Adjustment to reconcile net income Depreciation exp 34185 Amortization exp 9668 Increase account receivable (24886) increase inventory (16617) Decrease prepaid exp 3178 Decrease account payable (33927) Net cash flow fom operating activities 282040

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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