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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 36
Cash flows from operating activities-indirect method
The net income reported on the income statement for the current year was $185,000. Depreciation recorded on equipment and a building amounted to $96,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
A. Prepare the Cash Flows form Operating Activities section of the statement of cash flows, using the indirect method.
B. If the direct method had been used, would the net cash flow form operating activities have been the same? Explain.
The net income reported on the income statement for the current year was $185,000. Depreciation recorded on equipment and a building amounted to $96,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
A. Prepare the Cash Flows form Operating Activities section of the statement of cash flows, using the indirect method.
B. If the direct method had been used, would the net cash flow form operating activities have been the same? Explain.
Explanation
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Cash Flow Statement (CFS): It is the sta...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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