Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. harrison industries began 2021 with its accounts r

Harrison Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling ...

90.2K

Verified Solution

Question

Accounting

Harrison Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling
$48,000 and its total current liabilities totaling $20,000. At the end of the year, these same current
assets totaled $49,000, while its total current liabilities totaled $32,000. Net income for the year was
$21,000. Included in net income were a $5,000 loss on the sale of land and depreciation expense of
$7,000.
Show how Harrison should report cash flows from operating activities for 2021. The company uses the
indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease
in cash.)
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by (used for) operating activities:
Depreciation
Loss on sale of land
Increase in accounts receivable, inventory, and prepaid
expenses
Increase in current liabilities
$7,000
5,000
(1,000)
12,000
Net cash provided by (used for) operating activities
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

4 The graph f x x has a vertical compression of by a factor of...

Biology
1.2K views

1. Explain why the earliest evidence of animals in fhe fossil record would come from chemicals as...

Accounting
1.2K views

On January 1, Year 6, Magnus Co. leased a machine to Fisher Co. The machine was...

Basic Math
1.2K views

Suppose T R R is a linear transformation that first rotates a point about the...

Algebra
1.2K views

The Venn diagram here shows the elements in each set Use this to find the...

Accounting
1.2K views

Matthew County issued a 6-month, 6%, $1,000,000 Bond anticipation note

Accounting
1.2K views

Brief Exercise 8-10(Algo) Report current portion of long-term debt (LO8-4) ...

Accounting
1.2K views

Balance sheet analysis and changes in balance sheet over the past 5 years ...

Accounting
1.2K views

Compute the activity rate for each of the activity cost pools. Sultan Company uses an...

Accounting
1.2K views

EX.4-1 Select the best answer. Under the modified accrual basis of accounting, revenues cannot...

Accounting
1.2K views

Most true for amortizing debt issued at par? CPA practice choose one. 1. Premium...

Accounting
1.2K views

Write out in the same format as the question ...