Question Details

Neal Company reported net income 



1
Pierce Company reported net income of $180,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
	End of Year	Beginning of Year
Prepaid expenses	$  9,500	$  5,000
Inventories	50,000	65,000
Accounts receivable	24,000	32,000
Cash	20,000	15,000
Accounts payable	12,000	18,000
Income taxes payable	1,600	1,200

Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.


2
Neal Company reported net income of $140,000. For 2011, depreciation was $30,000, and the company reported a gain on sale of investments of $10,000. Accounts receivable increased $25,000 and accounts payable decreased $20,000.
Instructions
Compute net cash provided by operating activities using the indirect method.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help