Given the following information and using the indirect method, calculate the cash flows from operating activities.
End of Year Beginning of Year
Cash $ 38,500 $ 44,200
Accounts receivable (net) 79,200 68,800
Inventories 90,700 81,100
Prepaid expenses 4,500 6,500
Accounts payable 65,000 72,800
Salaries Payable 5,900 5,400
Net Income reported on the Income Statement for the current year was $115,000, which included a loss on sale of land of $8,000. Depreciation recorded on office equipment for the year amounted to $48,000.
Frequently Asked Questions
What scientific concept do you need to know in order to solve this problem?
Our tutors have indicated that to solve this problem you will need to apply the Operating Activities: Indirect Method concept. You can view video lessons to learn Operating Activities: Indirect Method. Or if you need more Operating Activities: Indirect Method practice, you can also practice Operating Activities: Indirect Method practice problems.
What is the difficulty of this problem?
Our tutors rated the difficulty ofGiven the following information and using the indirect metho...as medium difficulty.