FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information pertains to Guy's Gear Company.
Sales
Expenses:
Cost of Goods Sold
Depreciation Expense
Salaries and Wages Expense
Net Income
Accounts Receivable Decrease
Inventory Increase
Salaries and Wages Payable Increase
GUY'S GEAR COMPANY
Cash Flows from Operating Activities-Indirect Method
Adjustments to Reconcile Net Income to Cash
Provided by Operating Activities
$50,000
6,000
12,000
Changes in Current Assets and Current Liabilities
Required:
Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to
be deducted should be indicated with a minus sign.)
$
$ 4,000
8,000
750
$ 80,000
0
68,000
$12,000
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Transcribed Image Text:The following information pertains to Guy's Gear Company. Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Decrease Inventory Increase Salaries and Wages Payable Increase GUY'S GEAR COMPANY Cash Flows from Operating Activities-Indirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities $50,000 6,000 12,000 Changes in Current Assets and Current Liabilities Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) $ $ 4,000 8,000 750 $ 80,000 0 68,000 $12,000
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