Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for...
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Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $225,000. Depreciation recorded on equipment and a building amounted to $67,300 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $60,300 $63,320 Accounts receivable (net) 76,460 78,140 Inventories 150,750 134,620 8,380 8,930 Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 67,360 70,670 9,710 8,800 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: I 11011 Net cash flow from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same
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