Chapter 16_Student Worksheet_Spring 2012

Chapter 16_Student Worksheet_Spring 2012 - Quick Study 16-3...

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Quick Study 16-3 Indirect Method Cash flows from operating activities Net income . ................................................................................. A djustments to reconcile net income to operating cash flow Depreciation . ............................................................................ Accounts receivable decrease . .............................................. Inventory increase . .................................................................. Accounts payable increase . ................................................... Income taxes payable decrease . ............................................ Net cash provided from operating activities . .......................... Quick Study 16-4 Book Value = Cost – Accumulated Depreciation Computation of cash inflow from sale of furniture Cost of furniture sold (given) . ................................................. Accumulated depreciation at beginning of year (given) . ..... Increase from depreciation expense (given) . ........................ Total “expected” accumulated depreciation . ........................ Actual accumulated depreciation at end of year (given) . ..... Accumulated depreciation on sold furniture . ........................ Cash received from sale of furniture at book value . ............. Liabilities income. Change in Account Balance During Year Increase Decrease Current Subtract from net Add to net income. Assets income. Current Add to net income. Subtract from net Liabilities
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Quick Study 16-17 Indirect Method Part 1 KRUG, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2012 Cash flows from operating activities Net income . ............................................................................ Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable. ......................................... Increase in inventory . ........................................................... Decrease in accounts payable . ........................................... Increase in salaries payable . ............................................... Depreciation expense . .......................................................... Net cash provided by operating activities. .........................
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Chapter 16_Student Worksheet_Spring 2012 - Quick Study 16-3...

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