Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2011 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:
$\begin{array}{lr}
\text { Decrease in accounts receivable } & \$ 22,000 \
\text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
\text { Increase in salaries payable } & 10,400 \
\text { Decrease in income taxes payable } & 14,400
\end{array}$
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

Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2011 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:
$\begin{array}{lr}
 \text { Decrease in accounts receivable } & \$ 22,000 \
 \text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
 \text { Increase in salaries payable } & 10,400 \
 \text { Decrease in income taxes payable } & 14,400
\end{array}$
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 Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2011 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:
$\begin{array}{lr}
 \text { Decrease in accounts receivable } & \$ 22,000 \
 \text { Increase in inventories } & 9,400 \
\text { Increase prepaid expenses } & 8,900 \
 \text { Increase in salaries payable } & 10,400 \
 \text { Decrease in income taxes payable } & 14,400
\end{array}$
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)

Wilma Corporation Prepares Its Statement of Cash Flows Using the Indirect