Question

#1

Show Me How Calculator Print tem The net income reported on the income tatement for the current year was 147,000. Depreciation recorded on Watty accounts at the beginning and end of the year w as follow requipment for the year amounted to $24,400. Balances of the current and cu ) Accounts receivable Merchandisiner End of Yew Beginning of Year $57,640 $53.030 41-330 39,190 56.430 59.660 6,340 5.040 ) 54010 50.170 29.510 32.770 Accounts payable merchandise ore W yle v es section of the most of cash flows using the Indirect method Ure the indicat Prepare the Cash Flows from Operati tivem ents Statement of Cash Flows (partial) Cash flows from pering 01 011010

#2

Answer 1

Dear student,

As per the HOMEWORKLIB POLICY, only the first question should be answered. Kindly take note of it.

Part A

Statement of cash flows (partial)
Cash flows from operating activities:
Net income	147000
Adjustment to reconcile net income to net cash flow from operating activities
Depreciation	24400
Changes in current assets and liabilities:
Increase in accounts receivable (41330-39190)	(2140)
Decrease in merchandise inventory (56430-59660)	3230
Increase in prepaid expenses (6340-5040)	(1300)
Increase in accounts payable (54010-50170)	3840
Decrease in wages payable (29510-32770)	(3260)
Net cash flow from operating activities	$171770

Part B

The cash flows from operating activities differs from net income because it does not use the accrual basis of accounting. For example, revenues are recorded on the income statement, when they are earned not necessarily hen cash is received.