Cash flows from operating activities-indirect method
In the computation of net cash from operating activities for 2013 by the indirect method, determine whether each of the following items would be added to profit for the year, deducted from profit for the year, or omitted from the computation. Indicate your answer by using the following symbols: + (added to profit for the year), - (deducted from profit for the year), or 0 (omitted from computation).
____ (a) A decrease in accounts payable to suppliers of merchandise during 2013.
____ (b) A loss recognized on the sale of office equipment during 2013.
____ (c) Depreciation expense for 2013.
____ (d) Dividends, declared at the end of last year, paid to shareholders during the current year.
____ (e) An increase in inventory levels during 2013.
____ (f) A decrease in accounts receivable from customers during 2013.

Question

Quizplus · Accepted Answer

The Answer of Cash flows from operating activities-indirect method
In the computation of net cash from operating activities for 2013 by the indirect method, determine whether each of the following items would be added to profit for the year, deducted from profit for the year, or omitted from the computation. Indicate your answer by using the following symbols: + (added to profit for the year), - (deducted from profit for the year), or 0 (omitted from computation).
____ (a) A decrease in accounts payable to suppliers of merchandise during 2013.
____ (b) A loss recognized on the sale of office equipment during 2013.
____ (c) Depreciation expense for 2013.
____ (d) Dividends, declared at the end of last year, paid to shareholders during the current year.
____ (e) An increase in inventory levels during 2013.
____ (f) A decrease in accounts receivable from customers during 2013.

Cash Flows from Operating Activities-Indirect Method