termining Net Income from Net Cash Flow from Operating Activities Determining net income from net cash flows from operating activities Curwen Inc. reported net cash flows from operating activities of $199,500 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method: Line Item Description Amount Decrease in income taxes payable $4,100 Decrease in inventories 10,300 Depreciation 15,800 Gain on sale of investments 7,100 Increase in accounts payable 2,800 Increase in prepaid expenses 1,700 Increase in accounts receivable 7,700 a. Determine the net income reported by Curwen Inc. for the year ended December 31.
termining Net Income from Net Cash Flow from Operating Activities Determining net income from net cash flows from operating activities Curwen Inc. reported net cash flows from operating activities of $199,500 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method: Line Item Description Amount Decrease in income taxes payable $4,100 Decrease in inventories 10,300 Depreciation 15,800 Gain on sale of investments 7,100 Increase in accounts payable 2,800 Increase in prepaid expenses 1,700 Increase in accounts receivable 7,700 a. Determine the net income reported by Curwen Inc. for the year ended December 31.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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Question
termining Net Income from Net Cash Flow from Operating Activities
Determining net income from net
Curwen Inc. reported net cash flows from operating activities of $199,500 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method:
| Line Item Description | Amount |
|---|---|
| Decrease in income taxes payable | $4,100 |
| Decrease in inventories | 10,300 |
| 15,800 | |
| Gain on sale of investments | 7,100 |
| Increase in accounts payable | 2,800 |
| Increase in prepaid expenses | 1,700 |
| Increase in accounts receivable | 7,700 |
a. Determine the net income reported by Curwen Inc. for the year ended December 31.
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