Cash flow prs and sols

Cash flow prs and sols - 1. Using the following data,...

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Using the following data, prepare the operating activities section of a statement of cash flows for Franklin Corporation for the year ended December 31, 20X5, using the indirect method. Increase in salary payable $ 1,500 Decrease in accounts payable 2,000 Increase in accounts receivable 3,500 Net income 95,600 Decrease in inventory 5,800 Increase in prepaid expenses 1,200 Depreciation expense-equipment 5,500 Depreciation expense-buildings 7,500 Gain on sale of equipment 1,300 Loss on sale of patent 2,500 Solution: Franklin Corporation Partial Statement of Cash Flows For the Year Ended December 31, 20X5 Cash flows from operating activities: Net income $ 95,600 Add (subtract) items that affect net income and cash flows differently: Depreciation on equipment $ 5,500 Depreciation on buildings 7,500 Loss on sale of patent 2,500 Gain on sale of equipment (1,300) Increase in accounts receivable (3,500) Increase in prepaid expenses (1,200) Decrease in inventory 5,800 Increase in salary payable
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Cash flow prs and sols - 1. Using the following data,...

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