Question

New Vision Company completed its income statement and balance sheet and provided the following information: Service...

New Vision Company completed its income statement and balance sheet and provided the following information:

Service Revenue $ 66,000
Expenses:
Salaries and Wages $ 42,000
Depreciation 7,300
Utilities 6,000
Office 1,700 57,000
Net Income $ 9,000
Decrease in Accounts Receivable $ 12,000
Paid cash for equipment 5,000
Increase in Salaries and Wages Payable 9,000
Decrease in Accounts Payable 4,250

Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

NEW VISION COMPANY
Cash Flows from Operating Activities—Indirect Method
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities
Changes in Current Assets and Current Liabilities
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Answer #1
NEW VISION COMPANY
Cash flow from operating activities-Indirect Method
Net Income $       9,000
Adjsutments to reconcile net income to cash provided by operating activities:
Depreciation Expense 7300
Changes in Current Assets and Current Liabilities:
Decrease in Accounts receivable 12000
Increase in salaries and wages payable 9000
Decrease in accounts payable -4250
Net Cash provided by operating activities $     33,050
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