The following information is taken from the operating activities section of the statement of cash flows for the Parks Company for the year just ended: The following information is taken from the company's income statement for the year just ended: Required:
a.For each of the adjustments to convert net income to the cash basis,indicate whether the account increased or decreased.
b.Determine the net cash provided by operating activities using the direct method.You need not prepare the formal operating activities section of the statement of cash flows but you should show the adjustments that must be made to sales,expenses,and so forth and the cash flow balances of sales,expenses,etc.

Question

The following information is taken from the operating activities section of the statement of cash flows for the Parks Company for the year just ended:  The following information is taken from the company's income statement for the year just ended:  Required:
a.For each of the adjustments to convert net income to the cash basis,indicate whether the account increased or decreased.
b.Determine the net cash provided by operating activities using the direct method.You need not prepare the formal operating activities section of the statement of cash flows but you should show the adjustments that must be made to sales,expenses,and so forth and the cash flow balances of sales,expenses,etc.

Quizplus · Accepted Answer

The Answer of The following information is taken from the operating activities section of the statement of cash flows for the Parks Company for the year just ended:  The following information is taken from the company's income statement for the year just ended:  Required:
a.For each of the adjustments to convert net income to the cash basis,indicate whether the account increased or decreased.
b.Determine the net cash provided by operating activities using the direct method.You need not prepare the formal operating activities section of the statement of cash flows but you should show the adjustments that must be made to sales,expenses,and so forth and the cash flow balances of sales,expenses,etc.

The Following Information Is Taken from the Operating Activities Section