A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash:
$$\begin{array} { l r }
\text { Decrease in accounts receivable } & \$ 22,000 \
\text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
\text { Increase in salaries payable } & 10,400 \
& \
\text { Decrease in income taxes payable } & 14,400
\end{array}$$
Determine the net cash flow provided (used)by operating activities.
A) ($692,500)
B) $692,500
C) $723,700
D) ($536,300)
E) ($723,700)

Question

A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash:
$$\begin{array} { l r } 
\text { Decrease in accounts receivable } & \$ 22,000 \
\text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
\text { Increase in salaries payable } & 10,400 \
& \
\text { Decrease in income taxes payable } & 14,400
\end{array}$$ 
Determine the net cash flow provided (used)by operating activities.
A) ($692,500)
B) $692,500
C) $723,700
D) ($536,300)
E) ($723,700)

Quizplus · Accepted Answer

The Answer of A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash:
$$\begin{array} { l r } 
\text { Decrease in accounts receivable } & \$ 22,000 \
\text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
\text { Increase in salaries payable } & 10,400 \
& \
\text { Decrease in income taxes payable } & 14,400
\end{array}$$ 
Determine the net cash flow provided (used)by operating activities.
A) ($692,500)
B) $692,500
C) $723,700
D) ($536,300)
E) ($723,700)

A Corporation Prepares Its Statement of Cash Flows Using the Indirect