50.1K

Verified Solution

Link Copied!

Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $59,300 Gain on disposal of equipment 34,600 Net income 428,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $9,240 Inventory (5,260) Prepaid Insurance (1,970) Accounts payable (6,260) Income taxes payable 1,970 Dividends payable 1.380 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the Indirect method. Else the minus sic indicate cash outflows, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) Show Me How indicate cash outflows, cash payments, decreases in cash, or any negative adjustments, Statement of Cash Flows (partial) 428,700 59,300 Cash flows from (used for operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense Gain on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flows from operating activities

Answer & Explanation Solved by verified expert

See Answer