A. Prepare the operating activities section of a statement of cash flows for 201
ID: 2457288 • Letter: A
Question
A. Prepare the operating activities section of a statement of cash flows for 2012 using the indirect method. Amounts to be subtracted should be indicated by a minus sign.
Operating Activities Section
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Net income
Correct 4 of Item 1
Correct 5 of Item 1
Add (deduct) adjusting items:
Decrease in inventories
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Correct 7 of Item 1
Correct 8 of Item 1
Decrease in accounts receivable
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Correct 9 of Item 1
Correct 10 of Item 1
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Increase in salaries payable
Correct 11 of Item 1
Correct 12 of Item 1
Decrease in inventories
Decrease in salaries payable
Gain on sale equipment
Increase in accounts payable
Increase in accounts receivable
Correct 13 of Item 1
Correct 14 of Item 1
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Correct 15 of Item 1
Correct 16 of Item 1
Decrease in accounts payable
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Correct 18 of Item 1
Net cash provided from operating activities
$
HideA. Prepare the operating activities section of a statement of cash flows for 2012 using the indirect method. Amounts to be subtracted should be indicated by a minus sign.
Operating Activities Section
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Net income
Correct 4 of Item 1
$Correct 5 of Item 1
Add (deduct) adjusting items:
Decrease in inventories
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Correct 7 of Item 1
Correct 8 of Item 1
Decrease in accounts receivable
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Correct 9 of Item 1
Correct 10 of Item 1
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Increase in salaries payable
Correct 11 of Item 1
Correct 12 of Item 1
Decrease in inventories
Decrease in salaries payable
Gain on sale equipment
Increase in accounts payable
Increase in accounts receivable
Correct 13 of Item 1
Correct 14 of Item 1
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Correct 15 of Item 1
Correct 16 of Item 1
Decrease in accounts payable
Decrease in inventories
Decrease in salaries payable
Increase in accounts payable
Increase in accounts receivable
Correct 18 of Item 1
Net cash provided from operating activities
$
Explanation / Answer
**dEpreciation = Beginning accumulated dep - depreciation on asset sold -ending balance
= 16000 - (15000-3000) -12000
= 16000 - 12000-12000
= 8000
cash flow from operating activity net income 30000 Add/less:Adjustment to reconcile net income to cash from operating activity Depreciation ** 8000 Gain on sale (2000) Change in current asset /liabilities decrease in receivable (42000-36000) 6000 Increase in inventory (25000 -28000) (3000) decrease in payables (35000-31000) (4000) Increase in salary payables (1000-2000) 1000 net cash provided by operating actiivty 36000