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Homework answers / question archive / Use the following information to perform the calculations below (using the indirect method)
Use the following information to perform the calculations below (using the indirect method). Net income $400,000 Beginning accounts payable $110,000 Depreciation expense 90,000 Ending accounts payable 140,000 Beginning accounts receivable 420,000 Purchase of long-term assets 600,000 Ending accounts receivable 430,000 Issuance of long-term debt 200,000 Beginning inventory 510,000 Issuance of stock for cash 150,000 Ending inventory 550,000 Issuance of stock for long-term assets 100,000 Beginning prepaid insurance 40,000 Purchase of treasury stock 60,000 Ending prepaid insurance 46,000 Sale of long-term investment at cost 50,000 (a) Calculate the amount of cash flows from operating activities. (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flows from operating activities $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer
Net cash flows from operating activities is 464,000
Computation: Netincorne 400,000.00 Adjustments to reconcile net income Depreciation expense 00,000.00 Changes in current operating assets and liabilities Increase in accounts receivable [10,000.00] Increase in inventory [40,000.00] Increase in prepaidinsurance [6,000.00] Increase in accounts payable 30,000.00 hie-t cash ?ows from operating activities
