Question

Staley Inc. reported the following data: Net income $300,200 Depreciation expense 76,000 Loss on disposal of equipment 20,600 Increase in accounts receivable 27,600 Increase in accounts payable 10,100 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Answer 1

Answer:

Explanation:

The Preparation of Cash Flows from Operating Activities is shown below:-

Net income                                   $300,200

Depreciation expense                  $76,000

Loss on disposal of equipment    $20,600

Increase in accounts receivable  -$27,600

Increase in accounts payable       $10,100

Net cash provided by

operating activities                          $379,300