PA12-2 Computing Cash Flows from Operating Activitles (Indlrect Method) [LO 12-2] The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue $52, 600 Expenses: Cost of Goods Sold Depreciation Expense Salaries and wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 23,000 2,400 9,400 4,900 2,100 2,000 1,600 $ 7, 200 Net Income Selected Balance Sheet Accounts Beginning Balances $ 620 750 Ending Balances Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and wages Payable Utilities Payable $ 580 950 440 500 33 24 29 36 92 56 28 19 Required: Prepare 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.)

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Required information Skip to question   [The following information applies to the questions displayed below.]   Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:     Ending Balance   Beginning Balance Cash and cash equivalents $ 102,000   $ 122,400 Accounts receivable   81,700     88,000 Inventory   109,700     100,000 Total current assets   293,400     310,400 Property, plant, and equipment   291,000     280,000 Less accumulated depreciation   97,000     70,000 Net property, plant, and equipment   194,000     210,000 Total assets $ 487,400   $ 520,400             Accounts payable $ 64,000   $ 113,700 Income taxes payable   49,700     65,700 Bonds payable   120,000     100,000 Common stock   140,000     120,000 Retained earnings   113,700     121,000 Total liabilities and stockholders’ equity $ 487,400   $ 520,400…

Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets     Cash $230,690 $215,090 Accounts receivable (net) 83,570 77,250 Inventories 235,920 228,730 Investments 0 88,610 Land 121,010 0 Equipment 260,290 202,220 Accumulated depreciation—equipment (60,940) (54,530) Total assets $870,540 $757,370 Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $157,570 $149,200 Accrued expenses payable (operating expenses) 15,670 19,690 Dividends payable 8,710 6,820 Common stock, $10 par 47,010 37,110 Paid-in capital in excess of par—common stock 176,720 103,000 Retained earnings 464,860 441,550 Total liabilities and stockholders' equity $870,540 $757,370 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were…

Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets     Cash $269,900 $253,670 Accounts receivable (net) 97,780 91,110 Inventories 276,000 269,750 Investments 0 104,510 Land 141,570 0 Equipment 304,530 238,490 Accumulated depreciation—equipment (71,290) (64,310) Total assets $1,018,490 $893,220 Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $184,350 $175,960 Accrued expenses payable (operating expenses) 18,330 23,220 Dividends payable 10,180 8,040 Common stock, $10 par 55,000 43,770 Paid-in capital in excess of par—common stock 206,750 121,480 Retained earnings 543,880 520,750 Total liabilities and stockholders' equity $1,018,490 $893,220 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land…

Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $154,100. Depreciation recorded on store equipment for the year amounted to $25,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End of Year Beginning of Year Cash $58,560   $53,290   Accounts receivable (net) 41,990   39,380   Inventories 57,330   59,950   Prepaid expenses 6,440   5,060   Accounts payable (merchandise creditors) 54,870   50,410   Wages payable 29,980   32,930   a.  Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.         Statement of Cash Flows (partial)   Cash flows from operating activities:   Net income    Adjustments to reconcile net income to net cash flow…

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.)

russell co reports sales revenue of 30000 and interest revenue of 5000. it comparative balance sheet show that accounts recievable decrease 4000 and interest recievable increased 1000 compute cash provided by operating activities using  the direct method