A- Statement of cash flows (indirect method)- The net changes in the b.docx
A. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Reading Corporation for the year 2015 are shown below. Other information ? increase in retained earnings was $130,000 for the year; there was $155,300 of purchases of property plant and equipment and the company issued $85,000 of common stock during the year. Prepare the operating section of the statement of cash flows under the indirect method. Solution STATEMENT OF CASH FLOW FROM OPERATIONS $ Net Income 1,30,000 Add: Depreciation 1,30,000 Add: Â Â Â Â Decrease in Prepaid Expense 22,800 Â Â Â Â Increase in allowance for doubful accounts 13,300 Â Â Â Â Increase in Accounts Payables 35,100 Less: Â Â Â Increase in Accounts Receivables -83,200 Â Â Â Increase in Inventory -74,200 Â Â Â Decrease in Income tax Payable -21,500 Cash Flow from Operations 1,52,300 .
A- Statement of cash flows (indirect method)- The net changes in the b.docx
A. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Reading Corporation for the year 2015 are shown below. Other information ? increase in retained earnings was $130,000 for the year; there was $155,300 of purchases of property plant and equipment and the company issued $85,000 of common stock during the year. Prepare the operating section of the statement of cash flows under the indirect method. Solution STATEMENT OF CASH FLOW FROM OPERATIONS $ Net Income 1,30,000 Add: Depreciation 1,30,000 Add: Â Â Â Â Decrease in Prepaid Expense 22,800 Â Â Â Â Increase in allowance for doubful accounts 13,300 Â Â Â Â Increase in Accounts Payables 35,100 Less: Â Â Â Increase in Accounts Receivables -83,200 Â Â Â Increase in Inventory -74,200 Â Â Â Decrease in Income tax Payable -21,500 Cash Flow from Operations 1,52,300 .
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A- Statement of cash flows (indirect method)- The net changes in the b.docx
- 1. A. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Reading Corporation for the year 2015 are shown below. Other information ? increase in retained earnings was $130,000 for the year; there was $155,300 of purchases of property plant and equipment and the company issued $85,000 of common stock during the year. Prepare the operating section of the statement of cash flows under the indirect method. Solution STATEMENT OF CASH FLOW FROM OPERATIONS $ Net Income 1,30,000 Add: Depreciation 1,30,000 Add: Â Â Â Â Decrease in Prepaid Expense 22,800 Â Â Â Â Increase in allowance for doubful accounts 13,300 Â Â Â Â Increase in Accounts Payables 35,100 Less: Â Â Â Increase in Accounts Receivables -83,200 Â Â Â Increase in Inventory -74,200 Â Â Â Decrease in Income tax Payable -21,500 Cash Flow from Operations 1,52,300