Exercise 13-5 The current sections of Scoggin Inc.’s balance sheets at December
ID: 2600002 • Letter: E
Question
Exercise 13-5
The current sections of Scoggin Inc.’s balance sheets at December 31, 2014 and 2015, are presented here.
Scoggin’s net income for 2015 was $154,500. Depreciation expense was $24,170.
2015
2014
$102,790
$98,170
108,290
87,560
157,140
171,410
26,080
22,370
$394,300
$379,510
$14,620
$5,290
84,270
92,750
$98,890
$98,040
Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2015, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
2015
2014
Current assets Cash$102,790
$98,170
Accounts receivable108,290
87,560
Inventory157,140
171,410
Prepaid expenses26,080
22,370
Total current assets$394,300
$379,510
Current liabilities Accrued expenses payable$14,620
$5,290
Accounts payable84,270
92,750
Total current liabilities$98,890
$98,040
For the Year Ended December 31, 2015 Adjustments to reconcile net income toExplanation / Answer
Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2015, using the indirect method.
Cash flow from operating activities Net income 154500 Adjustment to reconcile net income Depreciation exp 24170 Increase account receivable (20730) Decrease inventory 14270 Increase prepaid exp (3710) Increase Accrued expenses payable 9330 Decrease Accounts payable (8480) 14850 Net cash flow from operating activity 169350Related Questions
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