Suppose your company reports $220 of net income and $52 of cash dividends paid, and its comparative balance sheet indicates the following. Beginning Ending Cash $ 47 $ 267 Accounts Receivable 135 237 Inventory 305 197 Total $ 487 $ 701 Salaries and Wages Payable $ 22 $ 110 Common Stock 160 118 Retained Earnings 305 473 Total $ 487 $ 701 Required: 1. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.
|Statement of Cash Flow|
|Increase in AR||(102.00)|
|Decrease in inventory||108.00|
|Increase in Salaries and wages payable||88.00|
|Cash flow from operating activities||314.00|
|Note - Dividend and common stock are financing activities|
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