Ask Question
17 September, 22:28

Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Revenues $ 100,000 Accounts receivable decrease $ 24,000 Expenses Purchased a machine for cash 10,000 Salaries expense 84,000 Salaries payable increase 18,000 Utilities expense 14,000 Other accrued liabilities decrease 8,000 Depreciation expense 14,600 Other expenses 3,400 Net loss $ (16,000) Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (Any loss or amounts to be deducted should be indicated with a minus sign.)

+5
Answers (1)
  1. 17 September, 23:29
    0
    The preparation of the Cash Flows from Operating Activities-Indirect Method is shown below:

    Cash flow from Operating activities - Indirect method

    Net loss - $16,000

    Adjustment made:

    Add : Depreciation expense $14,600

    Add: Decrease in accounts receivable $24,000

    Add: Increase in salaries payable $18,000

    Less: Decrease in accrued liabilities - $8,000

    Total of Adjustments $48,600

    Net Cash flow from Operating activities $32,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers