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Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,200 increase in inventory, $7,400 increase in income taxes payable, $2,700 net income, $69,400 patent amortization expense, $1,500 ordinary loss, $6,400 decrease in deferred taxes payable, $2,300 amortization of discount on bonds payable, $1,400 payment of cash dividends, $26,000 depletion expense, $5,000 decrease in salaries payable, $2,000 decrease in accounts receivable, $3,600 gain on sale of equipment, $6,000 proceeds from issuance of stock, $56,000 ordinary gain, $3,100 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,500 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,200 increase in inventory, $7,400 increase in income taxes payable, $2,700 net income, $69,400 patent amortization expense, $1,500 ordinary loss, $6,400 decrease in deferred taxes payable, $2,300 amortization of discount on bonds payable, $1,400 payment of cash dividends, $26,000 depletion expense, $5,000 decrease in salaries payable, $2,000 decrease in accounts receivable, $3,600 gain on sale of equipment, $6,000 proceeds from issuance of stock, $56,000 ordinary gain, $3,100 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,500 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 20E
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Net Cash Flow From Operating Activities

Verna Company's records provided the following information for 2019:

  1. decrease in accounts payable, $4,000
  2. loss on sale of land, $1,200
  3. increase in inventory, $7,400
  4. increase in income taxes payable, $2,700
  5. net income, $69,400
  6. patent amortization expense, $1,500
  7. ordinary loss, $6,400
  8. decrease in deferred taxes payable, $2,300
  9. amortization of discount on bonds payable, $1,400
  10. payment of cash dividends, $26,000
  11. depletion expense, $5,000
  12. decrease in salaries payable, $2,000
  13. decrease in accounts receivable, $3,600
  14. gain on sale of equipment, $6,000
  15. proceeds from issuance of stock, $56,000
  16. ordinary gain, $3,100
  17. depreciation expense, $10,000
  18. amortization of discount on investment in bonds, $1,500

Required

Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

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