The net income reported on the income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.

Question

The net income reported on the income statement for the current year was $58,000.  Depreciation recorded on fixed assets for the year was $24,000.  In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000.  Balances of the current asset and current liability accounts at the end and beginning of the year are listed below.  Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.

Quizplus · Accepted Answer

The Answer of The net income reported on the income statement for the current year was $58,000.  Depreciation recorded on fixed assets for the year was $24,000.  In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000.  Balances of the current asset and current liability accounts at the end and beginning of the year are listed below.  Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.

The Net Income Reported on the Income Statement for the Current