SECTION Il Problem 20 points SHOW ALL YOUR WORK 21 Carriveau

SECTION Il: Problem (20 points) SHOW ALL YOUR WORK 21. Carriveau Corporation\'s most recent balance sheet appears below Comparative Balance Sheet Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalent. Accounts receivable. $31 73 $34 67 Inventory Total current assets . plant, and equipment. 370 Less accumulated Net property, plant, and equipment Total assets..cs Liabilities and stockholders\' equity Current liabilities: $49 19 $ 56 Accounts payable... Accrued liabilities. 20 100 300 30 Income taxes payable Total current liabilities 94 152 Bonds payable... Total liabilities.r Stockholders\' equity 35 146 Common stock Total stockholders equity Net income for the year was $172. Cash dividends were $35. The company did not sell or retire any property, plant, and equipment during the year. Prepare the Operating Cash Flow section of the Cash Flow Statement using the indirect method, showing what the Net inflow (outflow) is. sat

Solution

Net operating cash flow statement using indirect method Net income for the year 172 Adjustments to reconcile net income increase in accounts receivable -6 increase in inventory -10 Depreciation expense 11 Decrease in accounts payable -7 decrease in accrued liabilities -1 increase in income taxes payable 2 Net cash inflow from operating activities 161