A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash: $ \begin{array}{lr}
\text {Decrease in accounts receivable } & \$ 22,000\
\text {Increase in inventories } & 9,400\
\text {Increase prepaid expenses } &8,900\
\text {Increase in salaries payable } & 10,400\
\text {Decrease in income taxes payable } & 14,400\
\end{array} $
Determine the net cash flow provided (used)by operating activities.
A)($692,500)
B)$692,500
C)$723,700
D)($536,300)
E)($723,700)

Question

A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash: $ \begin{array}{lr}
\text {Decrease in accounts receivable } & \$ 22,000\
\text {Increase in inventories  } & 9,400\
\text {Increase prepaid expenses  } &8,900\
\text {Increase in salaries payable  } & 10,400\
\text {Decrease in income taxes payable  } & 14,400\
\end{array} $
 Determine the net cash flow provided (used)by operating activities.
A)($692,500)
B)$692,500
C)$723,700
D)($536,300)
E)($723,700)

Quizplus · Accepted Answer

The Answer of A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash: $ \begin{array}{lr}
\text {Decrease in accounts receivable } & \$ 22,000\
\text {Increase in inventories  } & 9,400\
\text {Increase prepaid expenses  } &8,900\
\text {Increase in salaries payable  } & 10,400\
\text {Decrease in income taxes payable  } & 14,400\
\end{array} $
 Determine the net cash flow provided (used)by operating activities.
A)($692,500)
B)$692,500
C)$723,700
D)($536,300)
E)($723,700)

A Corporation Prepares Its Statement of Cash Flows Using the Indirect