Complete the following schedule using the indirect method to create the operatin
ID: 2576813 • Letter: C
Question
Complete the following schedule using the indirect method to create the operating activity for the statement of cash flows (i.e. fill in the appropriate “+” or “–”) :
Net Income
non-cash items reflected in Net Income above:
_____ Depreciation
_____ Gain on sale of an asset
_____ Loss on sale of an asset
Changes in current assets and current liabilities
_____ Decreases in current assets
_____ Increases in current assets
_____ Decreases in current liabilities
_____ Increases in current liabilities
Explanation / Answer
Explanation : To arrive at cash flow from operating activity :
Net Income non-cash items reflected in Net Income above: + Depreciation - Gain on sale of an asset + Loss on sale of an asset Changes in current assets and current liabilities + Decreases in current assets - Increases in current assets - Decreases in current liabilities + Increases in current liabilities