Pita Pan, Inc. uses the indirect method to prepare its statement of cash flows. Presented...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Pita Pan, Inc. uses the indirect method to prepare its statement of cash flows. Presented below are selected items from its financial statements.
| 12/31/20X3 | 12/31/20X2 | |
| Accounts receivable | $47,000 | $38,000 |
| Prepaid insurance | $4,000 | $3,000 |
| Wages payable | $18,000 | $13,500 |
| Interest payable | $1,000 | $4,800 |
| Sales revenue | $230,000 | |
| Cost of goods sold | $165,000 | |
| Wages expense | $98,000 | |
| Insurance expense | $8,200 | |
| Interest expense | $11,200 |
Calculate the amount related to prepaids that will be added to or subtracted from Net Income in preparing the Cash from Operating Activities using the indirect method. If subtracted from Net Income, enter as a negative amount.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.