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The account balances for the non-cash current assets and current liabilities of Kid - game Software Inc. are as follows: December 31 2023 2022 Accounts receivable $ 117,000 $92,500 Inventory 83,200 105,000 Prepaid expenses 49,400 42,500 Totals $ 249,600 $240,000 Accounts payable $ 75,000 $57,500 Salaries payable 22,500 32,500 Interest payable 42, 500 35,000 Totals $ 140,000 $125,000 During 2023, Kid - game Software Inc. reported depreciation expense of $47,000. All purchases and sales are on account. Profit for 2023 was $243,000. Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

The account balances for the non-cash current assets and current liabilities of Kid - game Software Inc. are as follows: December 31 2023 2022 Accounts receivable $ 117,000 $92,500 Inventory 83,200 105,000 Prepaid expenses 49,400 42,500 Totals $ 249,600 $240,000 Accounts payable $ 75,000 $57,500 Salaries payable 22,500 32,500 Interest payable 42, 500 35,000 Totals $ 140,000 $125,000 During 2023, Kid - game Software Inc. reported depreciation expense of $47,000. All purchases and sales are on account. Profit for 2023 was $243,000. Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The account balances for the non-cash current assets and current liabilities of Kid - game Software Inc. are as follows: December 31 2023 2022 Accounts receivable $ 117,000 $92,500 Inventory 83,200 105,000 Prepaid expenses 49,400 42,500 Totals $ 249,600 $240,000 Accounts payable $ 75,000 $57,500 Salaries payable 22,500 32,500 Interest payable 42, 500 35,000 Totals $ 140,000 $125,000 During 2023, Kid - game Software Inc. reported depreciation expense of $47,000. All purchases and sales are on account. Profit for 2023 was $243,000. Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)
Transcribed Image Text:The account balances for the non-cash current assets and current liabilities of Kid - game Software Inc. are as follows: December 31 2023 2022 Accounts receivable $ 117,000 $92,500 Inventory 83,200 105,000 Prepaid expenses 49,400 42,500 Totals $ 249,600 $240,000 Accounts payable $ 75,000 $57,500 Salaries payable 22,500 32,500 Interest payable 42, 500 35,000 Totals $ 140,000 $125,000 During 2023, Kid - game Software Inc. reported depreciation expense of $47,000. All purchases and sales are on account. Profit for 2023 was $243,000. Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)
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