Question

Staley Inc. reported the following data:Net income $396,200Depreciation expense 61,250Loss on disposal of equipment 27,600Increase in accounts receivable 9,000Increase in accounts payable 3,350Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.Staley Inc.Statement of Cash Flows (partial)

Answer 1

Answer:

  $479,400

Explanation:

The preparation of the Cash Flows from Operating Activities - Indirect Method is presented below:

Cash flow from Operating activities - Indirect method

Net income $396,200

Adjustment made:

Add : Depreciation expense $61,250

Add: Loss on disposal of equipment $27,600

Less: Increase in accounts receivable -$9,000

Add: Increase in accounts payable $3,350

Total of Adjustments $83,200

Net Cash flow provide by Operating activities        $479,400