Question

Question 8 Not changed since last attempt Marked out of 5.00 P Flag question Indirect Method -- Preparing the Operating Activities Section The following data are from the accounting records of Clooney Company. Description Amount Net income accrual basis) $ 100,000 Depreciation expense 19.500 Decrease in salaries payable 3,000 Decrease in trade accounts receivable 4.500 Increase in merchandise inventory 6,250 Amortization of patent 250 Increase in long-term liabilities 25,000 Sale of capital stock for cash 62.500 Accounts payable increase 10,000 Prepare the operating activities section of the statement of cash flows for Clooney Company using the indirect method. Cash Flows from Operating Activities Increase in accounts payable 10000 Auments Deprecation expense 19500 Amortization of parent 250 Decrease intre accounts receivable 4500 Increase in merchandise inventory Decreases payable Increase in long-term labies come 0 MacBook Pro 30 888 2 3 $ 4 5 8 7 8 Q w E R Т. < U :lock А S D F G H Н. J N Х C V B N

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Answer 1

Cash flow from Operating Activities

Net Income	100000
ADD : depreciation expense	19500
Amortization expense	250
Decrease in accounts receivable	4500
Accounts payable increase	10000
Total	134250
LESS : Decrease in salaries payable	(3000)
Increase in merchandise inventory	(6250)
Cash generated from operating activities	125000