Macrosoft Company reports net income of $59,000. The accounting records reveal depreciation expense of $74,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $54,000, $10,000, and $15,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method.

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Business

Taylor Cabrera

21 April, 08:26

Macrosoft Company reports net income of $59,000. The accounting records reveal depreciation expense of $74,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $54,000, $10,000, and $15,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method.

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Kaylynn · Answer 1

Cash flow from Operations Amount in $

Net income 59,000

Depreciation expense 74,000

Increase in prepaid rent (54,000)

Increase in accounts payable 10,000

Increase in income tax payable 15,000

Net cash flows from operations 104,000

Explanation:

Information given about Macrosoft Company

Net income = $59,000

Depreciation expense = $74,000

Prepaid rent = $54,000

Accounts payable = $10,000

Income tax payable = $15,000

Cash flow from Operations Amount in $

Net income 59,000

Depreciation expense 74,000

Increase in prepaid rent (54,000)

Increase in accounts payable 10,000

Increase in income tax payable 15,000

Net cash flows from operations 104,000