Gemstone Distributors reports net income of $63,000. Included in that number is depreciation expense of $14,000 and a loss on the sale of land of $5,800. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $33,000, a decrease in inventory of $19,000, and an increase in accounts payable of $53,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
Gemstone Distributors reports net income of $63,000. Included in that number is depreciation expense of $14,000 and a loss on the sale of land of $5,800. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $33,000, a decrease in inventory of $19,000, and an increase in accounts payable of $53,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 14M
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Transcribed Image Text:Gemstone Distributors reports net income of $63,000. Included in that number is depreciation expense of $14,000 and a loss on the
sale of land of $5,800. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of
$33,000, a decrease in inventory of $19,000, and an increase in accounts payable of $53,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be
indicated with a minus sign.)
GEMSTONE DISTRIBUTORS
Statement of Cash Flows (partial)
Cash flows from operating activities:
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities
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