Suppose your company sells services for $445 cash this month. Your company also pays $280...
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Suppose your company sells services for $445 cash this month. Your company also pays $280 in salaries and wages, which includes $135 that was payable at the end of the previous month and $145 for salaries and wages of this month. 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
Suppose your company sells services for $445 cash this month. Your company also pays $280 in salaries and wages, which includes $135 that was payable at the end of the previous month and $145 for salaries and wages of this month. 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2)
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