From the following, calculate the net cash flows from operating activities (use
ID: 2608182 • Letter: F
Question
From the following, calculate the net cash flows from operating activities (use the indirect method):
2011
2012
Accounts Receivable
$5,800
$7,500
Prepaid Insurance
950
830
Accounts Payable
5,500
6,200
Salaries Payable
1,250
2,650
For the year ended 2007:
Net Income:
$17,900
Depreciation Expense
4,800
2011
2012
Accounts Receivable
$5,800
$7,500
Prepaid Insurance
950
830
Accounts Payable
5,500
6,200
Salaries Payable
1,250
2,650
For the year ended 2007:
Net Income:
$17,900
Depreciation Expense
4,800
Explanation / Answer
Net income 17900 Add:Depreciation 4800 Less:increase in AR(7500-5800) (1700) Add:decrease in prepaid expense(950-830) 120 Add"increase in AP(6200-5500) 700 Add:increase in salary payable(2650-1250) 1400 Net cash from operating activities $23220.
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