Question

Exercise 12-3 Indirect: Reporting and interpreting cash flows from operations LO P2 Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Revenues $ 85,000 Expenses Salaries expense 69,000 Utilities expense Depreciation expense 31,200 Other expenses 7,600 Net loss $(55, 800) Selected Year-End Balance Sheet Data Accounts receivable decrease $29,000 Purchased a machine for cash 21,000 Salaries payable increase 26,000 Other accrued liabilities decrease 14,000 Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (Any losses or amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities

Answer 1

-55,800 cash from operating activities net income (loss) adjustments to reconcile net income to net cash provided by operating activities income statement items not affecting cash add:depreciation expense change in current operating assets and liabilities | ladd : decrease in in accounts receivable add salaries payable increase less other acrual liabilities decrease net cash flows provided by operating activities 31200 29000 26000 -14000 16,400