The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
$\begin{array}{lrr}&\text { End of Year }&\text { Beginning of Year }\
\text { Cash } & \$ 20,000 & \$ 15,000 \
\text { Accounts receivable } & 19,000 & 32,000 \
\text { Inventories } & 50,000 & 65,000 \
\text { Accounts payable } & 12,000 & 18,000
\end{array}$ Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Question

The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
​ $\begin{array}{lrr}&\text { End of Year }&\text { Beginning of Year }\
\text { Cash } & \$ 20,000 & \$ 15,000 \
\text { Accounts receivable } & 19,000 & 32,000 \
\text { Inventories } & 50,000 & 65,000 \
\text { Accounts payable } & 12,000 & 18,000
\end{array}$ Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Quizplus · Accepted Answer

The Answer of The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
​ $\begin{array}{lrr}&\text { End of Year }&\text { Beginning of Year }\
\text { Cash } & \$ 20,000 & \$ 15,000 \
\text { Accounts receivable } & 19,000 & 32,000 \
\text { Inventories } & 50,000 & 65,000 \
\text { Accounts payable } & 12,000 & 18,000
\end{array}$ Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

The Dickinson Company Reported Net Income of $155,000 for the Current