Using the indirect method, calculate the amount of cash flows from operating activities from the following data: Net Income $199,000 Beginning Accounts receivable 22,000 ending accounts recievable 29,000 Beginning Prepaid insurance 5,000 Ending prepaid insurance 2,000 Beginning Accounts payable 15,000 Ending Accounts payable 14,000 Depreciation expense 50,000 Amortization of intangible asset 6,000 dividends declared and paid
Using the indirect method, calculate the amount of cash flows from operating activities from the following data: Net Income $199,000 Beginning Accounts receivable 22,000 ending accounts recievable 29,000 Beginning Prepaid insurance 5,000 Ending prepaid insurance 2,000 Beginning Accounts payable 15,000 Ending Accounts payable 14,000 Depreciation expense 50,000 Amortization of intangible asset 6,000 dividends declared and paid
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 29BE
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Question
Using the indirect method, calculate the amount of cash flows from operating activities from the following data:
Net Income | $199,000 | ||||
|
|
Beginning Accounts receivable
|
22,000 | ||
|
|
ending accounts recievable |
29,000 | ||
Beginning Prepaid insurance | 5,000 | ||||
Ending prepaid insurance | 2,000 | ||||
Beginning Accounts payable | 15,000 | ||||
Ending Accounts payable | 14,000 | ||||
50,000 | |||||
Amortization of intangible asset | 6,000 | ||||
dividends declared and paid | 11,000 |
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