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The net income reported on the income statement for the current year was $127,100. Depreciation recorded on store equipment for the year amounted to...
The net income reported on the income statement for the current year was $127,100. Depreciation recorded on store equipment for the year amounted to $21,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of YearBeginning of YearCash$48,810 $44,420 Accounts receivable (net)35,000 32,830 Inventories47,780 49,970 Prepaid expenses5,370 4,220 Accounts payable (merchandise creditors)45,730 42,020 Wages payable24,990 27,450
a. Prepare the Cash Flows from Operating Activities section of the , using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial)Cash flows from operating activities:Net income
$Adjustments to reconcile net income to net cash flow from operating activities:Depreciation
Changes in current operating assets and liabilities:Increase in accounts receivable
Decrease in inventories
Increase in prepaid expenses
Increase in accounts payable
Decrease in wages payable
Net cash flow from operating activities$
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