Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Question
Chapter 13, Problem 13.4E
To determine
These refer to the cash received or cash paid in day-to-day operating activities of a company.
Indirect method:
Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.
- Deduct increase in current assets.
- Deduct decrease in current liabilities.
- Add decrease in current assets.
- Add the increase in current liability.
- Add depreciation expense and amortization expense.
- Add loss on sale of plant assets.
- Less gain on sale of plant assets.
To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.
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Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
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