Question

00 for 2019. Net income Operations come of $100,000 for 2019. N. preciation on fixed assets for th d and beginning of the year are lis: for the years e listed below Section C: Cash Flows from Operations Golden Rams Company reported net income of $100 loss on the sale of equipment of $10,000 and depreciatia $15,000. Balances of select accounts at the end and be Balances Ending Beginning $ 70,000 Cash Accounts Receivable Inventories Prepaid Rent 78,000 102,000 4,000 100,000 500,000 58,000 5,000 175,000 $ 65,000 70,000 85,000 5,000 100,000 520,000 50,000 8,000 150,000 Land Building and Equipment (net). Accounts Payable Salaries Payable Bonds Payable. ows from operating activities section of the statement of cash flows us Prepare the net cash flows from operating activities the indirect method.

Answer 1

The Golden Rams Company

	$	$
Net profit for 2019		100,000
Add: Depreciation		15,000
Add: Loss on sale of Equipment		10,000
Operating cash flows before working capital changes		$ 125,000
Working capital changes:
Increase in accounts receivable	(8,000)
Increase in inventory	(17,000)
Decrease in prepaid rent	1,000
Increase in accounts payable	8,000
Decrease in salaries payable	(3,000)
Total change in working capital		(19,000)
Net cash flows from Operating activity		106,000

Bonds payable are typically long term in nature, due to bonds pertaining to more than one accounting period.