The net income reported on the income statement for the current year was $840,000. Depreciation
recorded on plant assets was $38,000. Accounts receivable and inventories increased by $8,000 and $32,000, respectively. Prepaid expenses and accounts payable decreased by $4,000 and $44,000, respectively. How much cash was provided by operating activities?
Which of the following is the first step in preparing the statement of cash flows?
Determine the net cash provided by operating activities.
Determine the net income.
Determine net cash provided by investing and financing activities.
Determine the net increase (decrease) in cash.
During 2010, Bale Company sold equipment with a book value of $90,000 for proceeds of $104,000. The company purchased new equipment for $240,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2010. The investing section of the statement of cash flows will report
net cash outflows of $226,000.
net cash outflows of $136,000.
net cash inflows of $104,000.
net cash inflows of $14,000.
When using the indirect method to compute cash provided by operating activities
income taxes paid may be ignored.
amortization expense is added to net income.
decreases in inventory are subtracted from net income.
increases in accounts receivable are added to net income.
The statement of cash flows will not report the
amount of checks outstanding at the end of the period.
sources of cash in the current period.
uses of cash in the current period.
change in the cash balance for the current perio