Homework SourseThe following income statement and information about changes
The following income statement and information about changes in noncash current assets and current liabilities are reported.
Required:
Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
| The following income statement and information about changes in noncash current assets and current liabilities are reported. |
Solution
Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method
| Cash flow from operating activities | ||
| Net income | 677664 | |
| Adjustment to reconcile net income | ||
| Depreciation expense | 52128 | |
| Amortization expenses—Patents | 6516 | |
| Gain on sale of equipment | -8688 | |
| Account receivable increase | -15800 | |
| Inventory increase | -20650 | |
| Account payable decrease | -15050 | |
| Salary payable decrease | -3050 | |
| -4594 | ||
| Net cash flow from operating activities | 673070 |
