Hampton Company reports the following information for its recent calendar year.   Income Statement Data   Selected Year-End Balance Sheet Data   Sales $ 77,000 Accounts receivable increase $ 7,000 Expenses:   Inventory decrease 3,000 Cost of goods sold 41,000 Salaries payable increase 800 Salaries expense 10,000     Depreciation expense 8,000     Net income $ 18,000       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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1.2 

Hampton Company reports the following information for its recent calendar year.
 

Income Statement Data   Selected Year-End Balance Sheet Data  
Sales $ 77,000 Accounts receivable increase $ 7,000
Expenses:   Inventory decrease 3,000
Cost of goods sold 41,000 Salaries payable increase 800
Salaries expense 10,000    
Depreciation expense 8,000    
Net income $ 18,000    

 
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.)

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