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Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year
Required: Prepare the operating activities section of the statement of cash flows for the company using the indirect method (
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Answer #1
Cash Flows from Operating Activities using Indirect Method for Year ended
31st December, Year 2
$
Net Income      76,000
Adjustments for the following
Depreciation      42,000
Decrease in Accounts Receivables        6,200
Increase in Inventory     (16,000)
Increase in Accounts Payables        4,000
Decrease in Prepaid expenses        1,200
Decrease in Income Tax payable      (1,800)
Net cash flows from Operating Activities 111,600
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