Question

The independent cases are listed below includes all balance sheet accounts related to operating activities: Case...

The independent cases are listed below includes all balance sheet accounts related to operating activities:
Case A Case B Case C
  Net income $ 315,000 $    17,500 $ 425,000
  Depreciation expense   45,000 155,000   85,000
  Accounts receivable increase (decrease)   110,000 (205,000 ) (25,000 )
  Inventory increase (decrease) (55,000 )    40,000   55,000
  Accounts payable increase (decrease) (55,000 ) 125,000   75,000
  Accrued liabilities increase (decrease)   65,000 (225,000 ) (45,000 )

Show the operating activities section of cash flows for each of the given cases. (Amounts to be deducted should be indicated with a minus sign.)

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Answer #1

Answer:-

Statement of Cash Flow (Using Indirect Method) Partial
For the year ended
Particulars Case A Case B Case C
$   $   $  
Cash flow from operating activities
Net Income 315000 17500 425000
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation 45000 155000 85000
Change in operating assets & liabilities
Accounts receivable -110000 205000 25000
Inventory 55000 -40000 -55000
Accounts payable -55000 125000 75000
Accrued liabilities 65000 -225000 -45000
Net cash flow from operating activities (a) 315000 237500 510000
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