The net income reported on the income statement for the current year?
November 16, 2008
amy asked:
The net income reported on the income statement for the current year
was 275,000. Depreciation recorded on fixed assets and amortization
of patents for the year were 40,000 and 9,000, respectively.
Balances of current asset and current liability accounts at the end
and at the beginning of the year are as follows
The net income reported on the income statement for the current year
was 275,000. Depreciation recorded on fixed assets and amortization
of patents for the year were 40,000 and 9,000, respectively.
Balances of current asset and current liability accounts at the end
and at the beginning of the year are as follows
End Beginning
Cash $ 50,000 $ 60,000
Accounts receivable 112,000 108,000
Inventories 105,000 93,000
Prepaid expenses 4,500 6,500
Accounts payable (merchandise creditors) 75,000 89,000
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
$198,000
$324,000
$352,000
$296,000
November 19th, 2008 at 7:42 am
Net Income…………………………$ 275,000
Adjustments:
..Depreciation of fixed assets………40,000
..Amortization of patents……………..9,000
Changes in current operating
assets and liabilities:
..Prepaid expenses…………………..(2,000)
..Accounts receivable…………………4,000
..Inventories. . . . . . . . . . . . . . . . . 12,000
..Accounts payable…………………..14,000
Net cash flow from operations…..$352,000