The net income reported on the income statement for the current year was $ Depreciation recorded on store equipment for the year amounted to $ 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$$Accounts receivable netInventoriesPrepaid expensesAccounts payable merchandise creditorsWages payable
Question Content Area
aPrepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
blank
blank
Statement of Cash Flows partialCash flows from operating activities:
Decrease in prepaid expensesDepreciationIncrease in inventoriesNet income
$ Select Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in accounts payableDecrease in accounts receivableDepreciationIncrease in wages payable
Select Changes in current operating assets and liabilities:
DepreciationIncrease in accounts receivableIncrease in inventoriesIncrease in wages payable
Select
Decrease in accounts receivableDecrease in inventoriesDecrease in prepaid expensesIncrease in inventories
Select
Decrease in accounts receivableIncrease in inventoriesIncrease in prepaid expensesIncrease in wages payable
Select
Decrease in accounts payableDepreciationIncrease in accounts payableIncrease in wages payable
Select
Decrease in accounts receivableDecrease in prepaid expensesDecrease in wages payableIncrease in wages payable
Select Net cash flow from operating activities$fill in the blank fbf
Question Content Area
bCash flows from operating activities differs from net income because it does not use the
accrual basiscash basis
of accounting. For example revenues are recorded on the income statement when
they are earnedcash is received
