Question

Cash Flows from Operating Activities—Indirect Method

Answer 1

$396,200 + 61,250 +   27,600+ 9,000+ = 479,000 dollars

Answer 2

Answer:

                                                 Staley Inc.

                               Statement of Cash Flow(Partial)

1.  Cash flow from operating activities

2. Net Income                                                                  $396,200

3. Adjustments to reconcile net Income to net

  Cash flow from operating activities:

4. Depreciation                                                    $61,200

5.Loss on Disposal of equipment                       $27,600

                                                                                           $88,800

6. Changes in current operating assets & liabilities:

7. Increase in account receivable                          -$9,000

8. Increase in accounts payable                              $3,350

                                                                                              -5650

9.  Cash generated from operations                                   83,150

     

Explanation: