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28 Sep 2019
Preppare the Cash Flows from Operating Activites section of thestatement of cash flows, using the indirect method.
The income statement disclosed the following items for 2016:
Depreciation expense $24,000 Gain on disposal of equipment $16,000 Net income $38,000
Changes in current assets and current liabilities betweenDecember 31, 2015 and December 31, 2016, are as follows:
Increase in accounts receivable $20,000 Decrease in inventory 14,000 Increase in prepaid insurance 2,000 Decrease in accounts payable 5,000 Decrease in interest payable 1,000 Increase in incomes taxes payable 10,000
Statement of Cash Flows
Cash from Operating Activites
Preppare the Cash Flows from Operating Activites section of thestatement of cash flows, using the indirect method.
The income statement disclosed the following items for 2016:
| Depreciation expense | $24,000 |
| Gain on disposal of equipment | $16,000 |
| Net income | $38,000 |
Changes in current assets and current liabilities betweenDecember 31, 2015 and December 31, 2016, are as follows:
| Increase in accounts receivable | $20,000 |
| Decrease in inventory | 14,000 |
| Increase in prepaid insurance | 2,000 |
| Decrease in accounts payable | 5,000 |
| Decrease in interest payable | 1,000 |
| Increase in incomes taxes payable | 10,000 |
Statement of Cash Flows
| Cash from Operating Activites | |
Bunny GreenfelderLv2
28 Sep 2019
