Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable. Accounts payable The Year 2 income statement showed net income of $26,500. Year 2 $12,800 7,200 Year 1 $18,500 9,400 Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding
balances were drawn from the company's Year 2 and Year 1 year-end balance sheets.
Year 2
$12,800
7,200
Account Title
Accounts receivable
Accounts payable
The Year 2 income statement showed net income of $26,500.
Year 1
$18,500
9,400
Required
a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus
sign.)
Transcribed Image Text:Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Year 2 $12,800 7,200 Account Title Accounts receivable Accounts payable The Year 2 income statement showed net income of $26,500. Year 1 $18,500 9,400 Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
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