Construct a schedule showing the operating cash flows with the use of indirect method.

Question

The income statement for Piura Merchandising Corporation is as follows: Other information is as follows: a. Accounts payable decreased by $20,000 during the year. b. Accounts receivable increased by $20,000. c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000. d. Prepaid insurance increased by $24,000 during year. Required: Prepare a schedule that provides the operating cash flows for the year using the indirect method.

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Question

Chapter 14, Problem 42E

To determine

Construct a schedule showing the operating cash flows with the use of indirect method.

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