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Svetlanka [38]
4 years ago
11

Macrosoft Company reports net income of $62,000. The accounting records reveal depreciation expense of $77,000 as well as increa

ses in prepaid rent, accounts payable, and income tax payable of $57,000, $10,000, and $16,500, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method.
Business
1 answer:
iren2701 [21]4 years ago
5 0

Answer:

$108,500

Explanation:

The preparation of the operating activities section is presented below

Cash flow from operating activities

Net income $62,000

Add: depreciation expense $77,000

Add: Increase in account payable $10,000

Add: Increase in income tax payable $16,500

Less: Increase in prepaid rent -$57,000

Cash flow from operating activities $108,500

The negative amount shows cash outflow and the positive amount shows the cash inflow

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Hello.

Your question was incomplete so I attached a picture showing the missing details.

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